What you need to know on Wednesday, May 19:
The weakness of the dollar in general persisted. The dollar fell against all of its major rivals, with EUR / USD and GBP / USD closing in on this year’s highs, the former hovering above 1.22 and the latter just below 1.4200.
The dollar fell after some officials at the US Federal Reserve reiterated that they will maintain the current ultra-lax monetary policy regardless of the latest spike in inflation. The US currency regained some ground during the US afternoon, but remained the weakest currency in all currency markets.
AUD / USD closed around 0.7800, supported by encouraging RBA meeting minutes and intraday gold gains. USD / CAD, on the other hand, was affected by falling oil prices and the poor performance of European and US equities.
Crude oil prices fell in market talks, suggesting a breakthrough in the Vienna talks on an Iranian nuclear deal. However, Mikhail Ulyanov, Russia’s representative, later clarified that significant progress has been made, but also that issues remain unresolved and that negotiations will continue. However, WTI ended the day in the red at $ 65.50 a barrel.
Gold prices continued to advance. The shiny metal hit $ 1,874.91 a troy ounce, its highest level since last January, although it ended the day virtually unchanged at around 1,867.
The focus shifts to the Minutes of the FOMC meeting, which will be released this Wednesday. The dollar may fall further as the US central bank is likely to repeat its message.
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