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The US Dollar experienced a corrective movement on Thursday, which helped the risk complex recover some ground before the release of the US PCE and advanced inflation data for the euro area, which are all scheduled for Friday.
Currencies
The USD Index (DXY) came under pressure and retreated from weekly highs past the 105.00 hurdle against the backdrop of declining US yields. On May 31, all the attention will be on the release of inflation data tracked by the PCE along with Personal Income and Personal Spending.
EUR/USD briefly tested the 200-day SMA around 1.0790 before staging a marked comeback to the area beyond 1.0800 the figure. The EMU’s advanced Inflation Rate and Retail Sales in Germany will be at the centre of the debate on May 31.
GBP/USD set aside two daily drops in a row and advanced further north of the 1.2700 barrier following the offered stance in the Greenback. In the UK, Mortgage Approvals and Mortgage Lending are due on May 31 along with Nationwide Housing Prices.
Amidst declining US and Japanese yields, the upward impulse in the USD/JPY lost some of its momentum and precipitated a retreat to weekly lows. On May 31, the Japanese docket will announce the unemployment rate, housing starts, and preliminary industrial production.
After briefly falling below 0.6600, AUD/USD was able to recover equilibrium and close the session with notable gains in the 0.6650 region. Housing Credit is only due in Australia on May 31.
Commodities
Due to the declining US yields and a weaker dollar, gold prices increased slightly and momentarily returned to the $2,350 per troy ounce range. Alternatively, silver’s losses quickened, plunging to three-day lows close to $31.00 per ounce.
The EIA reports that when concerns over increased demand arose in the aftermath of growing stockpiles of petrol and distillate, WTI prices fell even further and dipped below the $78.00 level per barrel.
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