This is what you need to know to trade today Thursday May 25:
The US dollar (USD) continues to gain strength against its main rivals on Thursday with the DXY Dollar Index trading at its highest level since mid-March above 104.00. In the second half of the day, the US Bureau of Economic Analysis will release the first review of the growth of the Gross Domestic Product (GDP) of the first quarter. The US economic agenda will also publish initial jobless claims and pending home sales for April.
The risk aversion environment in the markets, in the midst of the uncertainty surrounding the outcome of the US debt limit negotiations., helped the dollar outperform its rivals in the middle of the week. The Speaker of the US House of Representatives, Kevin McCarthy assured on Wednesday that the US would avoid a default, but noted that they still had a difference on spending.
The hard-line comments of the Fed governor, Christopher Waller, who said he would not support stopping rate hikes unless there was clear evidence that inflation was approaching the 2% target, provided additional support to the US currency. Late in the American session, the minutes of the Fed’s May monetary policy meeting revealed that policymakers were divided on support for further interest rate hikesbut this publication did not cause a noticeable reaction in the markets.
As of early Thursday, US stock index futures were trading mixed, with the Dow losing nearly 0.5% and the Nasdaq rising more than 1%. For its part, the yield on the 10-year US Treasury bond remains stable at around 3.75% after Wednesday’s recovery.
He EUR/USD remains under persistent downward pressure and is trading at its lowest level in more than two months below 1.0750 early Wednesday. Earlier in the day, data from Germany has revealed that GDP contracted at an annualized rate of 0.5% in the first quarter, versus the initial estimate of 0.1%.
Although the Consumer Price Index (CPI) figures were better than expected, the British Pound failed to hold up against the Dollar and the pair GBP/USD posted its lowest daily close since late March on Wednesday, below 1.2400. The pair is relatively quiet early Thursday and consolidates its weekly losses slightly above 1.2350.
Driven by rising US bond yields, the USD/JPY advanced towards 140.00 and reached its highest level since November. The pair is in a technical correction during the European morning and is trading slightly lower below 139.50.
Pressured by the broad strength of the USD and the decisive rebound seen in the 10-year US Treasury yield, the price of the Gold suffered heavy losses on Wednesday. XAU/USD is struggling to gain traction and is trading around $1,960 early on Thursday.
He Bitcoin it fell more than 3% on Wednesday and continued to decline during the Asian session on Thursday. However, having dipped below $26,000, BTC/USD has recovered some of its daily losses and is now trading near $26,200. Similarly, the ethereum it fell 3% on Wednesday and broke below $1,800.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
