This is what you need to know to trade today Wednesday May 31:
Market participants have turned cautious midweek on growing concerns over the US debt limit bill, which is facing resistance in both houses of Congress after the House Rules Committee The House will approve it by a narrow 7-6 margin on Tuesday. US dollar (USD) benefits from risk aversion in mid-week ahead of April JOLTS job vacancies data and Federal Reserve speeches. In the European session, Germany’s Destatis will publish inflation data for May.
Reflecting the bad mood in the markets, US stock index futures are down between 0.35% and 0.45%. The Dollar Index advances towards 104.50 after Tuesday’s slide and the 10-year US Treasury yield is already down 1% on the day to below 3.7%.
During Asian trading hours, data from China revealed that business activity in the manufacturing sector continued to contract at a slightly faster pace in May than in April, with the NBS manufacturing PMI dipping to 48.8 from 49.2. In the same period, the non-manufacturing PMI dipped to 54.5 from 56.4, but was well above market expectations (50.7).
He AUD/USD it came under bearish pressure in the Asian session and is now trading at its lowest level since early November, below 0.6500. Data released by the Australian Bureau of Statistics revealed on Wednesday that the Consumer Price Index (CPI) rose 6.8% annually in April, up from 6.3% in March. While testifying before the Senate Committee on Economic Legislation, Reserve Bank of Australia (RBA) Governor Philip Lowe reiterated that entrenched inflation would lead to higher interest rates and unemployment, but these comments did not help the dollar. Australian to find a balance.
He EUR/USD it rose towards 1.0750 and closed Tuesday in positive territory. However, the renewed strength of the dollar weighed on the pair in the early hours of Wednesday and sent it back below 1.0700. In Germany, the annual Consumer Price Index is expected to rise by 6.8%, up from 7.6% in April.
He USD/CAD gained bullish momentum and advanced to the 1.3650 area early on Wednesday. Later, market participants will closely monitor Canada’s first quarter Gross Domestic Product (GDP) growth.
He USD/JPY closed its second straight day in negative territory on Tuesday and continued lower early Wednesday, pressured by falling US bond yields. The pair is trading slightly above 139.50.
He GBP/USD it held above 1.2400 on Tuesday but lost traction mid-week. The pair remains lower in the European morning and pushes lower towards 1.2350.
The price of Gold It benefited from the pullback in US yields on Tuesday and rallied towards $1,960. XAU/USD consolidates its recent gains on Wednesday and fluctuates above $1,950.
He Bitcoin it plunged early Wednesday and fell towards $27,000, losing more than 2% on the day. ethereum posted marginal gains on Tuesday but reversed direction on Wednesday. At press time, the ETH/USD pair is down more than 1% on the day at $1,870.
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.
