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Amid multi-week highs in US yields, the USD Index (DXY) increased further and broke above the crucial 105.00 barrier. A further update to the Q1 GDP Growth Rate is scheduled for May 30, with weekly Initial Jobless Claims, Goods Trade Balance, and Pending Home Sales serving as backups. Bostic, Williams, and Logan from the Fed are all scheduled to speak.
Data Front: Despite the German flash CPI creeping up in May, EUR/USD moved nicely defensively and tested the 1.0800 zone. On May 30, the final figures for the EMU’s consumer confidence, industrial and economic sentiment, and unemployment rate will be revealed.
Because of the strengthening Dollar, GBP/USD fell to three-day lows and broke below the 1.2700 support level. On May 30, April’s Car Production will be the only release available across the Channel.
Further gains in the Greenback and an extra advance in US yields prompted USD/JPY to climb to new highs around 157.70. In the Japanese calendar, the usual weekly Foreign Bond Investment figures are expected on May 30.
AUD/USD added to Tuesday’s pullback and put the 0.6600 contention zone to the test against the backdrop of further bearishness hurting the risk-associated assets. On May 30, Building Permits are due along with the speech by RBA’s Hunter.
Commodities
The rapid rise in the US dollar and the strong performance of US rates across the curve caused gold prices to falter, returning to the $2,330 per troy ounce range. Prices for silver held onto the higher end of the range, only slightly falling to the $32.00 per ounce area.
The Dollar’s persistent upward movement forced WTI prices to break a three-session winning run and revert to the $79.00 area.
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What role have T-yields recently played in US dollar’s, gold’s price action?
