Forex Today – Asian Session: Focus on US PCE

The Dollar managed to regain some traction late in the day and trimmed most of its daily losses amid a decent bounce in US yields and fading expectations of a Fed rate cut in September.

Here's what you need to know on Wednesday, May 29:

The Dollar Index (DXY) rebounded from multi-day lows near 104.30 thanks to the strong return of US yields. On May 29, weekly mortgage applications are expected followed by the Fed's Beige Book. Additionally , the Fed's Williams is scheduled to speak.

EUR/USD failed to sustain the early move towards the vicinity of the 1.0900 region, eventually succumbing to the Dollar rebound. Germany's consumer confidence, as measured by GfK, is expected to be released on May 29 along with the preliminary inflation rate for the month of May.

GBP/USD retested the 1.2800 level for the first time since mid-March, although that move lost steam towards the end of the American session. There are no data releases scheduled in the English Channel on May 29.

The late recovery in the Dollar and the decent bounce in US yields across the curve led USD/JPY to reach multi-week highs beyond 157.00. In Japan, the Consumer Confidence Index will be released on May 29, followed by the BoJ's Adachi speech.

AUD/USD ended Tuesday's session with marginal losses after advancing to four-day highs near 0.6680. On May 29, the Westpac leading index is expected along with the RBA's monthly CPI indicator.

WTI prices rose further and surpassed the key $80.00 per barrel mark, mainly on hopes that OPEC+ will keep its crude oil production cuts unchanged at the cartel's meeting over the weekend.

Gold prices rose and broke above $2,360 per troy ounce despite the rebound in the Dollar and US yields, while caution remained on the rise ahead of the US PCE release later in the week. Silver gained more momentum and advanced for the third consecutive session, this time surpassing $32.00 per ounce.