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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD advances due to rising odds of an aggressive rate cut by the Fed
The Australian Dollar inches higher against the US Dollar on Monday. The AUD/USD pair may appreciate further due to growing speculation that the US Federal Reserve will opt for a jumbo 50 basis points rate cut at this week’s monetary policy meeting.
USD/JPY seems vulnerable near YTD low, around mid-140.00s ahead of Fed/BoJ meetings this week
The USD/JPY pair remains depressed around mid-140.00s during the Asian session on Monday, amid thin trading volumes on the back of a holiday in Japan. However, bearish traders might prefer to wait for this week's key central bank event risks before positioning for any further depreciating move.
Gold price stands tall near record high ahead of the key FOMC meeting this week
Gold price trades with a mild positive bias near the all-time peak touched on Friday. Rising bets for a 50 bps Fed rate cut later this month continue to act as a tailwind. Bulls now await this week’s key central bank event risks before placing fresh bets.
Week ahead: Key central banks in focus
This week will be an interesting one for the financial markets. In addition to several tier-1 data, the focus will be on the US Federal Reserve, closely shadowed by the Bank of England and the Bank of Japan.
European crypto fund founder calls Tether $118 billion scam
Founder of Cyber Capital, Europe’s oldest crypto fund, criticized Tether for their reserves and said there has been no audit since 2021. In a tweet thread on X, Justin Bons supports his stance on the stablecoin firm with statistics.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.