Forex Today: Fed rate cut bets and US CPI come to the fore

Forex Today: Fed rate cut bets and US CPI come to the fore

The Greenback extended the discouraging start to the week and retreated to multi-day lows as market participants digested sticky US producer prices and the neutral message from Chair Powell ahead of the release of US CPI on Wednesday.

Here is what you need to know on Wednesday, May 15:

The USD Index (DXY) added to Monday’s decline and broke below the 105.00 level against the backdrop of further weakness in US yields. On May 15, the US Inflation Rate takes centre stage seconded by Retail Sales, Business Inventories, the NAHB Housing Market Index, weekly Mortgage Applications by MBA and TIC Flows. In addition, Fed’s Kashkari and Bowman are due to speak.

EUR/USD maintained its bullish bias and advanced to five-week highs past the 1.0800 barrier. Another estimate of the EMU Q1 GDP Growth Rate is expected on May 15 along Industrial Production in the broader euro area.

GBP/USD rose further north of the key 200-day SMA, approaching at the same time the 1.2600 hurdle. The next release of note in the UK calendar will be the BoE’s Financial Stability Report on May 16.

USD/JPY printed its sixth day of gains out of the last seven, this time surpassing the 156.00 barrier to clinch new two-week peaks. Next on tap on the Japanese docket will be the preliminary Q1 GDP Growth Rate, final Industrial Production readings and Foreign Bond Investment on May 16.

AUD/USD kept its consolidative mood in place in the upper end of the range, always below the May peak around 0.6650. In Australia, the Wage Price Index is due on May 15.

Prices of WTI faded Monday’s advance and refocused on the downside on the back of the unchanged OPEC monthly report and the upside surprise in US producer prices.

Prices of Gold resumed their upward bias and flirted with the $2,360 zone per troy ounce in response to the weaker dollar and lower US yields. It cousin Silver added to Monday’s uptick and flirted with monthly highs around $28.75 per ounce.

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.

Read More


Posted

in

by

Tags:

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *