Forex Today: Major currency pairs stay in familiar ranges, eyes on German inflation

Source Fxstreet

Here is what you need to know on Wednesday, May 29:

Major currency pairs are having a difficult time finding direction in the first half of the week. Following Tuesday's modest rebound, the US Dollar (USD) Index hold steady slightly above 104.50. Later in the day, Consumer Price Index (CPI) data from Germany will be watched closely by market participants. During the American trading hours, the Federal Reserve (Fed) will release its Beige Book.

The upbeat consumer sentiment data from the US, combined with a nearly 2% increase seen in the 10-year US Treasury bond yield, helped the USD stay resilient against its rivals on Tuesday. Early Wednesday, the 10-year US yield holds steady above 4.5%. Meanwhile, US stock index futures trade in negative territory after Wall Street's main indexes registered small gains on Tuesday.

US Dollar PRICE This week

The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Japanese Yen.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   -0.08% -0.24% 0.05% -0.09% -0.43% -0.43% -0.27%
EUR 0.08%   -0.19% 0.17% -0.01% -0.42% -0.44% -0.16%
GBP 0.24% 0.19%   0.30% 0.15% -0.23% -0.19% 0.01%
JPY -0.05% -0.17% -0.30%   -0.18% -0.50% -0.41% -0.34%
CAD 0.09% 0.00% -0.15% 0.18%   -0.37% -0.34% -0.23%
AUD 0.43% 0.42% 0.23% 0.50% 0.37%   0.06% 0.21%
NZD 0.43% 0.44% 0.19% 0.41% 0.34% -0.06%   0.16%
CHF 0.27% 0.16% -0.01% 0.34% 0.23% -0.21% -0.16%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

During the Asian session, the data from Australia showed that the CPI rose 3.6% on a monthly basis in April. This reading followed the 3.5% increase recorded in March and came in above the market expectation of 3.4%. Other data from Australia showed that the ANZ Business Confidence Index declined to 11.2 in May from 14.9. AUD/USD edged slightly higher following the data releases and was last seen trading above 0.6650.

Australian Dollar consolidates after robust Monthly inflation, US Dollar remains firm.

Bank of Japan (BoJ) board member Seiji Adachi said early Wednesday that they are not yet at a stage where they are convinced there is a sustained achievement of price target, adding that they must maintain accommodative conditions. USD/JPY showed no reaction to these remarks and was last seen trading sideways at around 157.00.

Japanese Yen recovers early losses after BoJ Adachi favors to reduce bond-buying.

After rising toward 1.0900 during the European trading hours, EUR/USD lost its traction and declined toward 1.0850, closing virtually unchanged on Tuesday. The pair stays relatively quiet early Wednesday near Tuesday's closing level.

GBP/USD touched its highest level in over a month above 1.2800 on Tuesday but erased its gains to end the day flat above 1.2750. The pair trades marginally higher on the day at around 1.2770 in the European morning.

Gold posted gains for the third consecutive day on Tuesday. Nevertheless, the recovery seen in the US yields capped XAU/USD's upside and caused it to retreat toward $2,350.

Economic Indicator

Fed's Beige Book

The Beige Book reports on the current US economic situation. Through interviews with key business contacts, economists, market experts, and other sources are gathered by each of the 12 Federal Reserve Districts. The survey gives a picture of the overall US economic growth. An optimistic view of those authorities is considered as positive, or bullish for the USD, whereas a pessimistic view is considered as negative, or bearish for the Dollar.

Read more.

Last release: Wed Apr 17, 2024 18:00

Frequency: Irregular

Actual: -

Consensus: -

Previous: -

Source: Federal Reserve

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Gold holds steady below $4,150 amid elevated US yields Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
Author  FXStreet
Oct 06, Tue
Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
placeholder
WTI rises to near $89.50 as Middle East supply threats offset Persian Gulf recoveryWest Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
Author  FXStreet
Yesterday 01: 26
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
placeholder
Gold Price Forecast: XAU/USD retraces gains and nears two-month lows at $4,104Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and resumes its broader bearish trend, with the US Dollar (USD) appreciating across the board, as investors brace for the release of the minutes of the latest Federal Reserve (Fed) meeting.
Author  FXStreet
22 hours ago
Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and resumes its broader bearish trend, with the US Dollar (USD) appreciating across the board, as investors brace for the release of the minutes of the latest Federal Reserve (Fed) meeting.
placeholder
Euro slides to a 17-month low as France's budget crisis spreads — can 1.12 hold?EUR/USD touched 1.1162 on 5 October, its weakest level in 17 months, as France's budget standoff pushed the 10-year OAT above 5% and the OAT-Bund spread to roughly 160bp — the widest since the 2011-12 eurozone debt crisis. The euro now trades near 1.1215 ahead of US jobless claims and a $22 billion 30-year Treasury auction. Here are the levels and the two scenarios to watch.
Author  Irene Q.
1 hour ago
EUR/USD touched 1.1162 on 5 October, its weakest level in 17 months, as France's budget standoff pushed the 10-year OAT above 5% and the OAT-Bund spread to roughly 160bp — the widest since the 2011-12 eurozone debt crisis. The euro now trades near 1.1215 ahead of US jobless claims and a $22 billion 30-year Treasury auction. Here are the levels and the two scenarios to watch.
goTop
quote