Forex Today – Asian Session: The dollar runs on speculation of an interest rate hike

What you need to know on Thursday, May 13:

The greenback rallied to new weekly highs against most major rivals, after the US reporter posted higher-than-expected April inflation. Stocks fell steadily, while U.S. Treasury yields rose to their highest level in a month, as CPI figures suggest the Fed is wrong about its take on the temporary rise in inflation. Speculative interest rushed to increase the price ahead of the expected tightening of monetary policy.

EUR / USD fell to 1.2065, while GBP / USD fell to 1.4055, and both ended the day near those lows. Market traders ignored the encouraging data from the UK, as the country reported generally better numbers than anticipated. The Gross Domestic Product for the first quarter stood at -1.5%, while the monthly GDP for March stood at 2.1%. In the same month, Industrial Production increased by 3.6% year-on-year, while Manufacturing Production did so by 4.8% year-on-year. The positive headlines came as no surprise amid the country’s impressive immunization campaign that led to the economic reopening.

The Australian dollar also fell sharply against the dollar, while USD / CAD remained within familiar levels as oil prices continued to advance. USD / JPY is trading near its May high at 109.69.

Gold alternated between gains and losses, ending the day in bearish numbers at $ 1,820 a troy ounce. Crude prices fell before the close, although the WTI closed at $ 65.80 a barrel.

The focus now shifts to US retail sales, to be released next Friday. Better-than-expected figures could give the dollar another boost and put it on a bullish path.

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