Forex Today: US Dollar struggles to gain traction ahead of confidence data, Fedspeak

Eren Sengezer FXStreet

Here is what you need to know on Tuesday, May 28:

The US Dollar (USD) is having a hard time finding demand early Tuesday after weakening modestly against its major rivals on Monday. Housing Price Index for March, Conference Board's Consumer Confidence Index and Dallas Fed Manufacturing Business Index for May will be featured in the US economic calendar later in the day. Several Federal Reserve (Fed) policymakers are scheduled to deliver speeches during the American trading hours.

The USD Index edged lower in the second half of the day on Monday and closed the day in negative territory. Following a three-day holiday, the benchmark 10-year US Treasury bond yield declines slightly early Tuesday and US stock index futures trade marginally higher on the day.

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 weakest against the New Zealand Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.27%	-0.29%	-0.09%	-0.31%	-0.48%	-0.77%	-0.28%
EUR	0.27%		-0.04%	0.20%	-0.02%	-0.28%	-0.60%	0.04%
GBP	0.29%	0.04%		0.20%	-0.02%	-0.23%	-0.48%	0.03%
JPY	0.09%	-0.20%	-0.20%		-0.26%	-0.42%	-0.61%	-0.22%
CAD	0.31%	0.02%	0.02%	0.26%		-0.19%	-0.46%	-0.03%
AUD	0.48%	0.28%	0.23%	0.42%	0.19%		-0.23%	0.27%
NZD	0.77%	0.60%	0.48%	0.61%	0.46%	0.23%		0.48%
CHF	0.28%	-0.04%	-0.03%	0.22%	0.03%	-0.27%	-0.48%

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).

The data from Japan showed that the Corporate Service Price Index rose 2.8% on a yearly basis in April, following the 2.4% increase recorded in March. Additionally, Japan's Weighted Median Inflation Index, a key measure of the country’s trend inflation, rose 1.1% in April, slowing from a 1.3% increase in March. USD/JPY showed no reaction to these figures and was last seen moving sideways slightly below 157.00.

Japanese Yen receives pressure after Japan's Weighted Median Inflation shows slowdown.

Following a quiet European session, EUR/USD stretched higher in the American trading hours on Monday and ended the day in positive territory. The pair holds its ground early Tuesday and was last seen trading above 1.0870.

GBP/USD gained 0.25% on Monday and advanced toward 1.2800 early Tuesday, reaching its highest level in two months. The pair stays relatively quiet and fluctuates at around 1.2780 to being the European session.

Gold staged a decisive rebound and rose nearly 1% on Monday. XAU/USD, however, seems to be struggling to preserve its recovery momentum, trading in the red below $2,350 early Tuesday.

Gold price rebounds on weaker US Dollar, investors await US key data.

The Australian Bureau of Statistics reported on Tuesday that Retail Sales rose 0.1% on a monthly basis in April. This reading followed the 0.4% decline recorded in March and came in below the market expectation for an increase of 0.2%. After closing in positive territory on Monday, AUD/USD entered a consolidation phase above 0.6650 on Tuesday.

Australian Dollar rises amid subdued US Dollar ahead of looming US PCE.

Economic Indicator

Consumer Confidence

The Consumer Confidence index, released on a monthly basis by the Conference Board, is a survey gauging sentiment among consumers in the United States, reflecting prevailing business conditions and likely developments for the months ahead. The report details consumer attitudes, buying intentions, vacation plans and consumer expectations for inflation, labor market, stock prices and interest rates. The data shows a picture of whether or not consumers are willing to spend money, a key factor as consumer spending is a major driver of the US economy. Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish. Note: Because of restrictions from the Conference Board, FXStreet Economic Calendar does not provide this indicator's figures.

EUR/USD holds above 1.1750 after mixed PMI data

EUR/USD manages to hold above 1.1750 but struggles to gather recovery momentum on Friday, following the mixed February PMI figures from Germany and the Eurozone. In the second half of the day, Q4 GDP, December inflation and February PMI data from the US will be watched closely by market participants.

GBP/USD recovers further toward 1.3500 after UK PMI data

GBP/USD is recovering ground further toward 1.3500 in European trading on Friday, helped by a modest uptick in the Pound Sterling after stronger-than-expected UK January Retail Sales and February PMI data. However, the pair's further upside could be limited amid persistent US Dollar strength as the focus turns to key US data.

Gold rises for third day on geopolitical risks, US data eyed

Gold gains some positive traction for the third consecutive day on Friday. The upside potential, however, seems limited amid the mixed fundamental backdrop. Moreover, traders might opt to wait for the key US macro releases – the Advance Q4 GDP report and the Personal Consumption Expenditures (PCE) Price Index – before placing fresh directional bets.

US GDP growth expected to slow down significantly in Q4 after stellar Q3

The United States Bureau of Economic Analysis will publish the first preliminary estimate of the fourth-quarter Gross Domestic Product at 13:30 GMT. Analysts forecast the US economy to have expanded at a 3% annualized rate, slowing down from the 4.4% growth posted in the previous quarter.

Iran tensions and AI fears at the forefront ahead of key US data

Thursday’s scorecard shows major US Stock benchmarks closed modestly in the red amid mounting US-Iran tensions and AI disruption worries. The S&P 500 shed 19 points (0.3%) to 6,861, the Nasdaq 100 lost 101 points (0.4%) to 24,797, and the Dow Jones Industrial Average dropped 267 points (0.5%) to 49,395.

Official Trump price approaches breakout with mixed signals from traders

Official Trump (TRUMP) is trading at $3.50 at the time of writing, approaching its upper consolidation range. A breakout from this range could open the door for an upside move. On-chain data shows market indecision, with balanced flows between bulls and bears, signaling a lack of clear directional bias.