The Greenback started the week on a negative note as risk-related assets saw increased demand. This was fueled by easing inflation figures in China and additional stimulus measures, although caution remained high ahead of the release of crucial US inflation data.
The USD Index (DXY) saw minor losses but managed to stay above the 105.00 support level. On May 14, investors are keeping an eye on Producer Prices data and speeches by Fed officials, including Chair Powell. Meanwhile, EUR/USD reached new multi-day highs above 1.0800 due to Dollar weakness, with upcoming data including Germany’s final Inflation Rate and Economic Sentiment from the ZEW institute.
GBP/USD surged past 1.2500 as the Dollar weakened, with upcoming events including the release of UK labor market data and a speech by a Bank of England official. USD/JPY continued its upward trend, surpassing the 156.00 level, with upcoming data including Producer Prices from Japan.
AUD/USD recovered from a pullback and climbed above 0.6600, staying at the higher end of its monthly range. Data to watch out for in Australia includes the Wage Price Index on May 15. WTI prices increased above $79.00 per barrel due to positive data from China and concerns about supply disruptions from Canadian wildfires.
Gold prices retreated to around $2,330 after two consecutive days of gains as investors exercised caution ahead of US CPI data. Silver prices edged higher above $28.00 per ounce.
In summary, the start of the week saw the Greenback weaken against a backdrop of increased demand for risk-related assets. Key events to watch include US inflation data, speeches by Fed officials, and economic data releases from various countries. Investors are closely monitoring movements in currency pairs, commodity prices, and global economic indicators to gauge market sentiment and make informed trading decisions.
