This is what you need to know to trade today Thursday May 26:
Markets appear to have turned cautious early on Thursday ahead of the release of key US data. The dollar index is trading in a relatively tight range above 102.00 after Wednesday’s bounce and US stock index futures are down 0.3-0.7% in early European trading. The US Bureau of Economic Analysis is to release its second estimate of first-quarter GDP growth and the US Department of Labor is to release weekly data on initial jobless claims. The change in pending home sales for April will also feature on the US economic docket.
The Fed’s May monetary policy meeting minutes reaffirmed that the Fed remains on track to raise its policy rate by 50 basis points in June and July. The release further revealed that many participants judged inflation risks to be skewed to the upside and showed that several policymakers thought it would be appropriate to consider selling mortgage-backed securities.
Meanwhile, the city of Beijing reported 45 new coronavirus cases on Wednesday, down slightly from the 47 recorded on Tuesday. On a positive note, Shanghai ports would be operating at 95% capacity. The Shanghai Composite Index closed for the second consecutive day in positive territory, gaining more than 1% during that period.
The NZD/USD lost traction after hitting a fresh three-week high above 0.6500 on Wednesday. Reserve Bank of New Zealand Governor Adrian Orr acknowledged on Thursday that they cannot rule out a recession.
The USD/CAD it is moving sideways above 1.2800 early on Thursday. Later in the session, statistics from Canada are expected to report a 1.4% rise in retail sales in March, following February’s rise of 0.1%.
The EUR/USD remains relatively calm below 1.0700 early on Thursday. ECB Governing Council member Klaas Knot said on Wednesday that inflation expectations were well anchored at the upper bound and a 50 basis point rate hike in July was on the table. However, these comments did not help the common currency regain its strength. Macroeconomic data of great impact on the European economic calendar will not be published on Thursday.
The GBP/USD posted small gains on Wednesday as buyers continued to defend the 1.2500 level. However, the pair remains lower and trades near 1.2550 on Thursday amid risk aversion.
The USD/JPY it is moving up and down in a tight channel above 127.00. Japanese Prime Minister Fumio Kishida said earlier in the day that the Bank of Japan should strive to reach the 2% inflation target in a “stable and sustainable” way.
The Prayed It snapped a five-day winning streak on Wednesday and extended its decline early on Thursday. XAU/USD last traded below $1,850. The 10-year US Treasury bond yield is down almost 1% on the day, helping the pair limit its losses for now.
The Bitcoin it continues to struggle to make a decisive move in either direction and remains below the key $30,000 level. ethereum has dipped in the European morning and was last seen testing $1,900.
Source: Fx Street
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