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Forex Today: Dollar consolidates weekly gains ahead of mid-level data release

Here's what you need to know to trade today Thursday May 23:

The U.S. dollar (USD) benefited from Thursday's encouraging US PMI data, and the USD Index closed the fourth consecutive day in positive territory. April durable goods orders data and a revised University of Michigan consumer sentiment survey for May will be the highlights of the US economic agenda heading into the weekend.

The US S&P Global Composite PMI rose to 54.4 in May's flash estimate from 51.3 in April, showing that business activity continued to expand at a rapid pace. The manufacturing and services PMIs improved to 50.9 and 54.8, respectively. Following a downward correction seen in European trading hours, the USD index regained its traction and rose above 105.00 for the first time in 10 days. Early Friday, the index is holding steady near Thursday's closing level, while the benchmark 10-year U.S. Treasury yield is hovering below 4.5% after gaining more than 1%. Thursday.

US Dollar Prices This Week

The following table shows the percentage change of the United States Dollar (USD) against the main currencies quoted this week. The US dollar was the strongest currency against the Australian dollar.

USD 0.49% 0.06% 0.89% 0.86% 1.42% 0.65% 0.62%
EUR -0.49% -0.46% 0.46% 0.37% 0.93% 0.14% 0.14%
GBP -0.06% 0.46% 0.76% 0.88% 1.41% 0.60% 0.58%
JPY -0.89% -0.46% -0.76% -0.06% 0.52% -0.24% -0.27%
CAD -0.86% -0.37% -0.88% 0.06% 0.50% -0.22% -0.24%
AUD -1.42% -0.93% -1.41% -0.52% -0.50% -0.80% -0.79%
NZD -0.65% -0.14% -0.60% 0.24% 0.22% 0.80% -0.03%
CHF -0.62% -0.14% -0.58% 0.27% 0.24% 0.79% 0.03%

The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the US Dollar in the left column and scroll down the horizontal line to the Japanese Yen, the percentage change that appears in the box will represent USD (base)/JPY (quote).

During Asian trading, data from Japan showed that the National Consumer Price Index (CPI) rose 2.5% year-on-year in April, following the 2.7% growth recorded in March. In the same period, the national CPI excluding fresh foods rose 2.2%, coinciding with market expectations. He USD/JPY It showed no reaction to this data and extended its sideways trend around 157.00.

Reserve Bank of New Zealand (RBNZ) deputy governor Christian Hawkesby said on Friday that lowering interest rates was not part of the short-term discussions and noted that there was a lot of uncertainty about tradable inflation heading into the future. future. After rising to its highest level in over two months above 0.6150 thanks to the RBNZ's hawkish stance earlier in the week, the NZD/USD lost traction and retreated to the 0.6100 area.

The UK's Office for National Statistics reported that retail sales fell 2.3% month-on-month in April. This reading followed the 0.2% contraction recorded in March and was much worse than the market forecast for a 0.4% decline. He GBP/USD remains under modest downward pressure following the disappointing data and is trading below 1.2700.

He EUR/USD recorded small losses on Thursday, but managed to stay above 1.0800. The pair fluctuates in a narrow range around 1.0820 in the European morning on Friday. The German agency Destatis confirmed early in the day that real Gross Domestic Product grew by 0.2% quarterly in the first quarter.

After suffering heavy losses on Wednesday, the Gold It extended its decline on Thursday and fell more than 2% on the day. XAU/USD undergoes a technical correction early on Friday and trades below $2,340.

Source: Fx Street

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