Forex Today – Asian Session: Bets on Fed Rate Cuts Dominate the Scene

The dollar extended its recovery and hit new multi-day highs amid persistent rise in US yields and fading bets of a Fed rate cut in September.

Here's what you need to know on Thursday, May 30:

The US Dollar Index (DXY) rose further and surpassed the key barrier of 105.00 amid the rise to multi-week highs of US yields. Another revision of the growth rate is expected on May 30 of first-quarter GDP, followed by weekly initial jobless claims, the goods trade balance, and pending home sales. Additionally, the Fed's Bostic, Williams and Logan are expected to give statements.

EUR/USD remained well defensive and challenged the 1.0800 region even though the German preliminary CPI rose in May. Final EMU consumer confidence, economic and industry sentiment and unemployment rate will be released on May 30.

GBP/USD fell to three-day lows and broke through the 1.2700 support on the strength of the Dollar. April auto production will be the only release across the channel on May 30.

Additional gains in the Dollar and an extra advance in US yields took USD/JPY to new highs around 157.70. On the Japanese calendar, the usual weekly foreign bond investment figures are expected on May 30.

AUD/USD added to Tuesday's pullback and tested the 0.6600 containment zone against the backdrop of further downtrend impacting risk-on assets. On May 30, building permits are expected along with the RBA's Hunter speech.

The persistent upward march of the Dollar led WTI prices to halt a three-session positive streak and return to the $79.00 region.

Gold prices succumbed to the strong advance of the Dollar and the robust performance of US yields across the curve, once again revisiting the $2,330 per troy ounce level. Silver prices clung to the upper end of the range, retreating modestly to the $32.00 per ounce area.

Source: Fx Street

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