This is what you need to know to trade today friday may 27:
With risk flows dominating financial markets on Thursday, Wall Street’s major indices posted impressive gains and the dollar continued to lose interest. Although the market mood appears to have turned cautious early on Friday, the US Dollar Index is trading at its lowest level in a month near 101.50. Data for the US personal consumption expenditure (PCE) price index, the Fed’s preferred gauge of inflation, will be released later. The Bureau of Economic Analysis will also release personal income and spending data for April, along with the University of Michigan Consumer Sentiment Index for May.
US Core PCE Preview: Why There’s Room for a Dollar Upside Surprise
The prices of Petroleum rose sharply on Thursday amid renewed supply concerns and a barrel of West Texas Intermediate (WTI) rose to its highest level in ten days near $115. Earlier in the day, Russian Deputy Prime Minister Alexander Novak said Russia’s oil output was expected to decline to 480-500m tonnes this year, from 524m tonnes in 2021.
Bloomberg reported on Friday that Chinese Premier Li Keqiang has warned of dire consequences if the economy is not kept from falling further, saying a contraction in the second quarter must be avoided. Meanwhile, the US and Taiwan are reportedly planning to announce economic talks to deepen their ties, which could be seen as a factor that could lead to an escalation of geopolitical tensions between the US and China.
The EUR/USD took advantage of the selling pressure surrounding the dollar and advanced to its highest level in a month at 1.0765 before entering a consolidation phase. The pair remains on track to close the second week in a row in positive territory.
The GBP/USD posted small gains on Thursday and is trading in a relatively tight channel above 1.2600 on Friday. Britain’s Chancellor of the Exchequer announced on Thursday that they will send lump-sum payments of £650 to some 8 million lower-income households in the country.
After a three-day consolidation, the AUD/USD gained traction during Asian trading hours and climbed above 0.7100. Data from Australia showed that retail sales rose 0.9% on a monthly basis in April, matching market expectations.
The USD/JPY remains lower and trades near 127.00 early on Friday. Bank of Japan Governor Haruhiko Kuroda said on Friday that they do not expect prices to rise sustainably unless accompanied by wage increases.
On Thursday, the Prayed struggled to gain momentum as the 10-year US Treasury yield continued to rise and fall near 2.75%. XAU/USD remains calm on Friday and is trading sideways slightly above $1,850.
On Thursday, the Bitcoin fell to a two-week low of $28,000. Although BTC/USD managed to erase a small portion of its losses ahead of the weekend, it is still trading below the key $30,000 level. The ethereum suffered heavy losses in the second half of the week and lost almost 8% on Thursday. At press time, ETH/USD was down 1% on the day at $1,770.
Source: Fx Street
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