Forex News Timeline

11:35 Silver price today: Silver rises, according to FXStreet data
Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data.

11:23 Silver Price Forecast: XAG/USD stays on sidelines around $28.60 ahead of US Inflation data
Silver price (XAG/USD) trades in a confined range around $28.60 in Wednesday’s European session.

11:22 India Gold price today: Gold rises, according to MCX data
Gold prices rose in India on Wednesday, according to data from India's Multi Commodity Exchange (MCX).

11:16 FX option expiries for May 15 NY cut
FX option expiries for May 15 NY cut at 10:00 Eastern Time, via DTCC, can be found below - EUR/USD: EUR amounts 1.0650 874m 1.0665 1.2b 1.0670 435m 1.0750 999m 1.0775 455m 1.0790 488m 1.0795 498m 1.0800 794m 1.0825 1.3b 1.0850 724m 1.0900 875m - GBP/USD: GBP amounts 1.2455 487m - USD/CAD: USD amounts 1.3940 1.2b - USD/JPY: USD amounts 155.50 566m 156.00 1.3b - AUD/USD: AUD amounts 0.6580 639m 0.6600 1.6b - NZD/USD: NZD amounts 0.5915 731m 0.5945 439m .

FX option expiries for May 15 NY cut at 10:00 Eastern Time, via DTCC, can be found below - EUR/USD: EUR amounts 1.0650 874m 1.0665 1.2b 1.0670 435m 1.0750 999m 1.0775 455m 1.0790 488m 1.0795 498m 1.0800 794m 1.0825 1.3b 1.0850 724m 1.0900 875m - GBP/USD: GBP amounts 1.2455 487m - USD/CAD: USD amounts 1.3940 1.2b - USD/JPY: USD amounts 155.50 566m 156.00 1.3b - AUD/USD: AUD amounts 0.6580 639m 0.6600 1.6b - NZD/USD: NZD amounts 0.5915 731m0.5945 439m

11:13 AUD/JPY rises to near 103.50 amid risk-on sentiment
AUD/JPY continues its winning streak, hovering around 103.70 during the European session on Wednesday due to the improved risk appetite.

AUD/JPY extends its gains due to improved risk appetite on Wednesday.The Australian government aims to address headline inflation and alleviate cost-of-living pressures by allocating billions in funding.Japan’s Finance Minister Shunichi Suzuki will coordinate with the BoJ regarding the FX market to take possible measures if necessary.AUD/JPY continues its winning streak, hovering around 103.70 during the European session on Wednesday due to the improved risk appetite. The Australian Budget for 2024-25 has returned to a deficit after recording a surplus of $9.3 billion in 2023-24. The Australian government aims to tackle headline inflation and alleviate the cost of living pressures by allocating billions to reduce energy bills and rent, alongside initiatives to lower income taxes. On Wednesday, the Australian Bureau of Statistics released the Wage Price Index (Q1), an indicator of labor cost inflation. The index showed a 0.8% increase in the first quarter, falling slightly below the anticipated rise of 0.9%. On a year-over-year basis, it saw a 4.1% increase, also slightly lower than the expected 4.2% rise. On the JPY front, Japan’s Finance Minister Shunichi Suzuki stated on Tuesday that the government is collaborating with the Bank of Japan to ensure alignment in policy objectives regarding foreign exchange. He further noted that they are implementing all feasible measures to closely monitor movements in the Japanese Yen. Japan's 10-year government bond yield remains steady at around 0.95%, marking its highest level in over six months. This comes as the Bank of Japan (BoJ) reduced the amount of Japanese government bonds it would purchase this week, marking the first such move since lifting its negative interest rate policy in March. The interest rate differential between Japan and other major economies has encouraged investors to borrow the Japanese Yen (JPY) and invest in higher-yielding currencies, leading to a depreciation of the JPY. AUD/JPY Overview Today last price 103.69 Today Daily Change 0.03 Today Daily Change % 0.03 Today daily open 103.66 Trends Daily SMA20 101.54 Daily SMA50 99.9 Daily SMA100 98.6 Daily SMA200 97.09 Levels Previous Daily High 103.7 Previous Daily Low 103.1 Previous Weekly High 103.12 Previous Weekly Low 100.98 Previous Monthly High 105.04 Previous Monthly Low 97.78 Daily Fibonacci 38.2% 103.47 Daily Fibonacci 61.8% 103.33 Daily Pivot Point S1 103.28 Daily Pivot Point S2 102.89 Daily Pivot Point S3 102.68 Daily Pivot Point R1 103.87 Daily Pivot Point R2 104.08 Daily Pivot Point R3 104.47

11:04 Mexican Peso stabilizes after dropping two days in a row
The Mexican Peso (MXN) trades little changed during the European session on Wednesday as markets brace for the release of US Consumer Price Index (CPI) data for April, the main economic highlight of the day, and market sentiment stabilizes.

11:00 Turkey Budget Balance up to -177.83B in April from previous -209B
Turkey Budget Balance up to -177.83B in April from previous -209B

10:50 Pound Sterling holds into gains on soft US Dollar ahead of US inflation
The Pound Sterling (GBP) posts a fresh weekly high at the round-level resistance of 1.2600 against the US Dollar (USD) in Wednesday’s London session.

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The GBP/USD pair holds strength as the US Dollar is on the back foot ahead of the United States Consumer Price Index (CPI) data for April, which will be published at 12:30 GMT. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, dips below the crucial support of 105.00. Economists expect that monthly headline inflation grew at a steady 0.4%. The core CPI, which strips off volatile food and energy prices, is expected to have risen at a slower pace of 0.3% in April, from March’s reading of 0.4%. Annual headline CPI is forecasted to have softened to 3.4% from 3.5% in March. In the same period, core inflation is anticipated to have decelerated to 3.6% from the prior reading of 3.8%. The inflation data will significantly influence speculation for the Federal Reserve (Fed) interest-rate cuts. Currently, financial markets expect that the Fed will choose the September meeting as the point to start lowering interest rates. Along with the inflation reading, investors will also focus on the monthly Retail Sales for April, an indicator of household spending which can also give clues about the inflation outlook. The Retail Sales data is estimated to have grown at a slower rate of 0.4% from a 0.7% increase in March. Daily digest market movers: Pound Sterling strengthens on multiple tailwinds The Pound Sterling extends its winning spell for the third trading session on Wednesday. The Cable capitalizes on the soft US Dollar and uncertainty over when the Bank of England (BoE) will opt for interest-rate cuts. Currently, investors anticipate that the central bank will start to do so from the June meeting. The United Kingdom Employment report for the three months ending March, which was released on Tuesday, indicated that job market conditions deteriorated for the third time in a row. Due to rising joblessness, the Unemployment Rate rose to 4.3% as expected. Historically, easing labor market conditions boost expectations for the central bank to adopt a dovish stance on interest rates. However, the impact of this loosened labor market was offset by steady wage growth. BoE policymakers remain concerned over high service inflation as it could stall progress in the disinflation process. Services inflation is majorly driven by wage growth, which appears to be significantly stronger than what is required for inflation to return to the desired rate of 2%. After the labor market data, BoE Chief Economist Huw Pill commented: "Rates of pay growth remain quite well above what would be consistent for meeting the 2% inflation target sustainably." Pill emphasized the need to maintain a restrictive stance on monetary policy that continues to build downside pressure on domestic inflation. About rate cuts, Pill said that it is reasonable to believe that over the summer, “we will see enough confidence to consider lowering interest rates.” Technical Analysis: Pound Sterling tests 1.2600The Pound Sterling extends its upside to the crucial resistance of 1.2600. The GBP/USD pair climbs above the major resistance plotted from December 8 low of 1.2500. The near-term outlook of the Cable has improved as it seems well-established above the 20-day Exponential Moving Average (EMA), which trades around 1.2540. The asset has retraced 50% losses recorded from a 10-month high at around 1.2900. The 14-period Relative Strength Index (RSI) gradually approaches the 60.00 barrier. A decisive break above this level will trigger bullish momentum. Pound Sterling FAQs What is the Pound Sterling? The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, aka ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE). How do the decisions of the Bank of England impact on the Pound Sterling? The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects. How does economic data influence the value of the Pound? Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall. How does the Trade Balance impact the Pound? Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

10:30 Netherlands, The Gross Domestic Product n.s.a (YoY) dipped from previous -0.4% to -0.7% in 1Q
Netherlands, The Gross Domestic Product n.s.a (YoY) dipped from previous -0.4% to -0.7% in 1Q

09:59 EUR/USD Price Analysis: Breaks above descending trend channel, the next barrier is seen above 1.0880
The EUR/USD pair extends the rally near 1.0825 on Wednesday during the early European trading hours.

EUR/USD attracts some buyers to 1.0825 amid weaker USD on Wednesday. The pair resumes its upside as it holds above the key EMA; RSI indicator stands in bullish territory. The next upside barrier is seen at 1.0885; the first downside target is located at 1.0795.The EUR/USD pair extends the rally near 1.0825 on Wednesday during the early European trading hours. The uptick of the major pair is bolstered by the upbeat ZEW Economic Sentiment Survey and the softer US Dollar (USD). Investors will closely monitor the Eurozone GDP growth number, which is forecast to grow by 0.3% QoQ in the first quarter of 2024. According to the daily chart, EUR/USD has remained confined in a descending trend channel since mid-December 2023. The bullish outlook of the major pair resumes as it crosses above the key 100-day Exponential Moving Average (EMA). Additionally, the upward momentum is bolstered by the 14-day Relative Strength Index (RSI) stands in bullish territory around 60.80, indicating that further upside looks favorable.

The major pair breaks above the upper boundary of the descending trend channel and the psychological level of 1.0800. The next resistance level is seen at a high of April 9 at 1.0885. The additional upside filter to watch is a high of March 21 at 1.0943, en route to a high of March 8 at 1.0981, and finally the 1.1000 psychological level.

On the other hand, the first downside target for EUR/USD will emerge near the 100-day EMA at 1.0795. Any follow-through selling below this level will see a drop to a low of May 9 at 1.0724. Further south, the next contention level is located around a low of May 2 at 1.0650, followed by a low of April 16 at 1.0600. EUR/USD daily chartEUR/USD Overview Today last price 1.0824 Today Daily Change 0.0004 Today Daily Change % 0.04 Today daily open 1.082 Trends Daily SMA20 1.0724 Daily SMA50 1.0787 Daily SMA100 1.0826 Daily SMA200 1.0791 Levels Previous Daily High 1.0826 Previous Daily Low 1.0767 Previous Weekly High 1.0791 Previous Weekly Low 1.0724 Previous Monthly High 1.0885 Previous Monthly Low 1.0601 Daily Fibonacci 38.2% 1.0803 Daily Fibonacci 61.8% 1.079 Daily Pivot Point S1 1.0783 Daily Pivot Point S2 1.0746 Daily Pivot Point S3 1.0724 Daily Pivot Point R1 1.0841 Daily Pivot Point R2 1.0863 Daily Pivot Point R3 1.0899

09:53 France Inflation ex-tobacco (MoM) climbed from previous 0.2% to 0.5% in April
France Inflation ex-tobacco (MoM) climbed from previous 0.2% to 0.5% in April

09:51 France Consumer Price Index (EU norm) (MoM) meets forecasts (0.6%) in April
France Consumer Price Index (EU norm) (MoM) meets forecasts (0.6%) in April

09:51 France Consumer Price Index (EU norm) (YoY) meets forecasts (2.4%) in April
France Consumer Price Index (EU norm) (YoY) meets forecasts (2.4%) in April

09:41 Forex Today: US Dollar struggles to find demand as focus shifts to inflation report
Here is what you need to know on Wednesday, May 15: The US Dollar (USD) is finding it difficult to stay resilient against its major rivals in the European morning on Wednesday.

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p{font-size:14.72px;line-height:20px}.fxs-event-module-read-more{font-size:14.72px;line-height:20px}.fxs-event-module-calendar-title{font-size:22.4px;line-height:25.6px}.fxs-event-module-title{font-size:19.2px;line-height:27.2px}.fxs-event-module-header{font-size:19.2px;line-height:25.92px}.fxs-event-module-content{font-size:16px;line-height:21.6px}} Here is what you need to know on Wednesday, May 15: The US Dollar (USD) is finding it difficult to stay resilient against its major rivals in the European morning on Wednesday. Eurostat will publish the preliminary Gross Domestic Product (GDP) data for the first quarter. Later in the day, the Consumer Price Index and Retail Sales data for April will be featured in the US economic docket alongside the NY Empire State Manufacturing Index.US CPI set to grow at slower pace in April amid mounting concerns about inflation pickup.The US Bureau of Labor Statistics reported on Tuesday that the Producer Price Index (PPI) rose 2.2% on a yearly basis in April. This reading followed the 1.8% increase recorded in March and came in above the market expectation of 1.8%. Although the initial market reaction helped the USD gather strength, the improving risk mood caused the currency to lost its traction later in the American session. The USD Index closed the second consecutive day in negative territory on Tuesday and was last seen fluctuating below 105.00. Meanwhile, US stock index futures trade mixed early Wednesday after Wall Street's main indexes gained between 0.3% and 0.7% on Tuesday. Finally, the benchmark 10-year US Treasury bond yield edges lower toward 4.4%. US Dollar PRICE This week The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the Australian Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD -0.50% -0.51% 0.39% -0.21% -0.58% -0.57% -0.04% EUR 0.50% -0.06% 0.90% 0.29% -0.13% -0.09% 0.43% GBP 0.51% 0.06% 0.89% 0.33% -0.05% -0.03% 0.49% JPY -0.39% -0.90% -0.89% -0.64% -0.94% -1.02% -0.42% CAD 0.21% -0.29% -0.33% 0.64% -0.34% -0.37% 0.08% AUD 0.58% 0.13% 0.05% 0.94% 0.34% -0.08% 0.54% NZD 0.57% 0.09% 0.03% 1.02% 0.37% 0.08% 0.52% CHF 0.04% -0.43% -0.49% 0.42% -0.08% -0.54% -0.52% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).EUR/USD benefited from the selling pressure surrounding the USD and gained 0.3% on Tuesday. The pair continues to stretch higher early Wednesday and was last seen trading at its highest level since early April above 1.0820. After falling toward 1.2500 in the early American session on Tuesday, GBP/USD reversed its direction and advanced toward 1.2600 later in the day. The pair holds steady slightly below this level in the European morning. The data from Australia showed in the Asian session that the Wage Price Index rose 0.8% on a quarterly basis in the first quarter. Although this print came in slightly below the market expectation of 0.9%, it failed to trigger a noticeable in AUD/USD. At the time of press, the pair was up 0.2% on the day at 0.6640. Early Thursday, the Australian Bureau of Statistics will release labor market data for April.Australian Dollar gains ground ahead of US CPI.USD/JPY continued to edge higher but erased a portion of its daily gains in the second half of the day on Tuesday. Early Wednesday, the pair holds steady slightly below 156.50.Gold took advantage from the pullback seen in the US T-bond yields on Tuesday and retraced Monday's decline. XAU/USD stays in a consolidation phase above $2,350 early Wednesday.Gold price trades with modest gains, investors await US CPI and Retail Sales data.Economic Indicator Consumer Price Index (YoY) Inflationary or deflationary tendencies are measured by periodically summing the prices of a basket of representative goods and services and presenting the data as The Consumer Price Index (CPI). CPI data is compiled on a monthly basis and released by the US Department of Labor Statistics. The YoY reading compares the prices of goods in the reference month to the same month a year earlier.The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish. Read more. Next release: Wed May 15, 2024 12:30 Frequency: MonthlyConsensus: 3.4%Previous: 3.5%Source: US Bureau of Labor Statistics Why it matters to traders? The US Federal Reserve has a dual mandate of maintaining price stability and maximum employment. According to such mandate, inflation should be at around 2% YoY and has become the weakest pillar of the central bank’s directive ever since the world suffered a pandemic, which extends to these days. Price pressures keep rising amid supply-chain issues and bottlenecks, with the Consumer Price Index (CPI) hanging at multi-decade highs. The Fed has already taken measures to tame inflation and is expected to maintain an aggressive stance in the foreseeable future.

09:09 USD/CHF extends losses to near 0.9050 ahead of US inflation data
USD/CHF edges lower for the second successive session, trading around 0.9060 during the Asian hours on Wednesday.

USD/CHF edges lower due to a decline in the US Dollar and lower US yields.Fed Chair Jerome Powell has anticipated a sustained decrease in inflation, indicating diminished confidence in the disinflation outlook.Swiss Producer and Import Prices dropped 1.8% in April, marking the twelfth consecutive period of decrease.USD/CHF edges lower for the second successive session, trading around 0.9060 during the Asian hours on Wednesday. The decline of the USD/CHF pair could be attributed to the weaker US Dollar (USD) as investors shrugged off the higher-than-expected US Producer Price Index data for April. Investors will likely await the Consumer Price Index report scheduled for Wednesday. The US Bureau of Labor Statistics (BLS) reported that the Producer Price Index (PPI) rose 0.5% MoM in April, surpassing the market expectations of a 0.3% increase. The producer prices have rebounded from March's contraction of 0.1%. Additionally, the Core PPI, which excludes volatile food and energy prices, also surged 0.5% month-over-month, exceeding projections of 0.2%.Federal Reserve Chair Jerome Powell shared his views after the release of US PPI. According to a Reuters report, Powell has anticipated a continued decline in inflation and expressed less confidence in the disinflation outlook compared to previous assessments. He also highlighted that Gross Domestic Product (GDP) growth is expected to reach 2% or higher, attributing this positive forecast to the strength of the labor market. In Switzerland, Producer and Import Prices (YoY) dropped 1.8% in April, marking a slight improvement from the preceding decline of 2.1%. This marks the twelfth consecutive period of decrease, albeit at the slowest rate since December 2023. On a monthly basis, the measure of consumer price inflation increased by 0.6%, following a 0.1% rise in the previous month. Furthermore, traders are expected to closely monitor Industrial Production (YoY) for the first quarter, scheduled for release on Friday. This report will provide insights into the volume of production across industries such as factories and manufacturing in Switzerland. USD/CHF Overview Today last price 0.9055 Today Daily Change -0.0010 Today Daily Change % -0.11 Today daily open 0.9065 Trends Daily SMA20 0.9105 Daily SMA50 0.9022 Daily SMA100 0.8845 Daily SMA200 0.887 Levels Previous Daily High 0.9103 Previous Daily Low 0.9055 Previous Weekly High 0.9099 Previous Weekly Low 0.9036 Previous Monthly High 0.9195 Previous Monthly Low 0.8998 Daily Fibonacci 38.2% 0.9073 Daily Fibonacci 61.8% 0.9085 Daily Pivot Point S1 0.9046 Daily Pivot Point S2 0.9027 Daily Pivot Point S3 0.8998 Daily Pivot Point R1 0.9094 Daily Pivot Point R2 0.9122 Daily Pivot Point R3 0.9141

08:35 NZD/USD attracts some buyers above 0.6060, focus on US PPI and CPI data
The NZD/USD pair gains traction near 0.6055 on Wednesday during the early European trading hours.

NZD/USD holds positive ground around 0.6055, adding 0.32% in Wednesday’s early European session. Fed’s Powell said inflation might prove to be more persistent than expected, keeping the Fed to hold rate higher for longer.Westpac analysts anticipate the RBNZ will leave the OCR at 5.5% at its May meeting next week.The NZD/USD pair gains traction near 0.6055 on Wednesday during the early European trading hours. The pair edges higher for the second consecutive day and holds above the key 100-day Exponential Moving Average (EMA), supported by the softer USD Index (DXY) below the 105.00 level. The final reading of the US Consumer Price Index (CPI) and Retail Sales for April will be in the spotlight later on Wednesday.

The Federal Reserve (Fed) Chairman Jerome Powell said on Tuesday that inflation in the US might prove to be more persistent than expected, keeping the Fed holding rate higher for longer to achieve the central bank’s 2% target. Powell added that it is unlikely to hike rates more, even if the chances for rate cuts have become less. Investors have priced in nearly a 65% chance of a rate cut by the Fed in September 2024, according to the CME's FedWatch Tool.

The US Producer Price Index (PPI), wholesale inflation, hit its highest rate in a year, according to the Bureau of Labor Statistics on Tuesday. The annual PPI rose 2.2% YoY in April, compared to the 1.8% increase in March (revised from 2.1%), in line with the estimate. The Core PPI jumped 2.4% YoY in April, compared to an increase of 2.1% in the previous reading. The April CPI data might offer some hints about future monetary policy by the Fed. The hotter inflation outcome could delay the rate cut timeline for this year and lift the Greenback against its rivals.

On the Kiwi front, the Reserve Bank of New Zealand (RBNZ) will hold its meeting next week. Westpac analysts expect the RBNZ will leave the Official Cash Rate (OCR) unchanged at 5.5% at its May meeting. The New Zealand central bank is likely to remain comfortable with the forward outlook communicated in the February meeting. The markets believe that it is unlikely that the RBNZ will ease its policy before the Fed. This, in turn, might provide some support to the Kiwi and act as a tailwind for NZD/USD for the time being. NZD/USD Overview Today last price 0.6061 Today Daily Change 0.0020 Today Daily Change % 0.33 Today daily open 0.6041 Trends Daily SMA20 0.5964 Daily SMA50 0.6009 Daily SMA100 0.6084 Daily SMA200 0.6038 Levels Previous Daily High 0.6044 Previous Daily Low 0.5995 Previous Weekly High 0.6041 Previous Weekly Low 0.598 Previous Monthly High 0.6079 Previous Monthly Low 0.5851 Daily Fibonacci 38.2% 0.6025 Daily Fibonacci 61.8% 0.6014 Daily Pivot Point S1 0.6009 Daily Pivot Point S2 0.5978 Daily Pivot Point S3 0.596 Daily Pivot Point R1 0.6058 Daily Pivot Point R2 0.6076 Daily Pivot Point R3 0.6107

08:10 USD/CAD falls to near 1.3650 due to improved risk appetite, improved WTI price
USD/CAD has extended losses for the second successive session, trading around 1.3640 during the Asian hours on Wednesday.

USD/CAD edges lower due to a weaker US Dollar amid improved risk appetite.Fed Chair Jerome Powell has anticipated for a sustained decrease in inflation, indicating less confidence in the disinflation outlook.The higher WTI price contributes support for the Canadian Dollar.USD/CAD has extended losses for the second successive session, trading around 1.3640 during the Asian hours on Wednesday. The decline of the pair could be attributed to the weaker US Dollar (USD) as investors digested higher-than-expected US Producer Price Index data for April while awaiting the Consumer Price Index report scheduled for Wednesday. The US Bureau of Labor Statistics (BLS) reported that the Producer Price Index (PPI) rose 0.5% MoM in April, surpassing the market expectations of a 0.3% increase. The producer prices have rebounded from March's contraction of 0.1%. Additionally, the Core PPI, which excludes volatile food and energy prices, also surged 0.5% month-over-month, exceeding projections of 0.2%.Federal Reserve Chair Jerome Powell shared his views after the release of US PPI. According to a Reuters report, Powell has anticipated a continued decline in inflation and expressed less confidence in the disinflation outlook compared to previous assessments. He also highlighted that Gross Domestic Product (GDP) growth is expected to reach 2% or higher, attributing this positive forecast to the strength of the labor market. In Canada, the Royal Bank of Canada has revised its forecast for the USD/CAD pair to 1.3700 by the end of June 2024. This adjustment is attributed to the contrasting trajectories of interest rates between Canada and the United States (US). The Bank of Canada (BoC) is anticipated to implement four consecutive rate cuts in 2024, with an additional reduction of 100 basis points (bps) in 2025. While hawkish remarks from the Fed officials suggest maintaining the higher rates for longer. Regarding commodities, the rise in crude Oil prices could bolster the Canadian Dollar (CAD), undermining the USD/CAD pair. Canada's status as the largest oil exporter to the United States, and the largest oil consumer, contributes to this dynamic. West Texas Intermediate (WTI) crude Oil price retraces its recent losses, trading around $78.30 per barrel during Wednesday's Asian session. The advance of the crude Oil prices could be attributed to the latest crude Oil supply update from the American Petroleum Institute (API) released on Tuesday. Additionally, concerns have arisen due to wildfires nearing Fort McMurray, which serves as the central hub for Canada's Oil sands industry, contributing approximately 3.3 million barrels per day, equivalent to two-thirds of the nation's total output. USD/CAD Overview Today last price 1.3644 Today Daily Change -0.0007 Today Daily Change % -0.05 Today daily open 1.3651 Trends Daily SMA20 1.37 Daily SMA50 1.3625 Daily SMA100 1.3537 Daily SMA200 1.3566 Levels Previous Daily High 1.3691 Previous Daily Low 1.3633 Previous Weekly High 1.3763 Previous Weekly Low 1.3618 Previous Monthly High 1.3846 Previous Monthly Low 1.3478 Daily Fibonacci 38.2% 1.3655 Daily Fibonacci 61.8% 1.3669 Daily Pivot Point S1 1.3625 Daily Pivot Point S2 1.36 Daily Pivot Point S3 1.3567 Daily Pivot Point R1 1.3684 Daily Pivot Point R2 1.3717 Daily Pivot Point R3 1.3742

07:16 Indonesia Trade Balance came in at $3.56B, above expectations ($3.3B) in April
Indonesia Trade Balance came in at $3.56B, above expectations ($3.3B) in April

07:16 Indonesia Imports below expectations (8.69%) in April: Actual (4.62%)
Indonesia Imports below expectations (8.69%) in April: Actual (4.62%)

07:04 Indonesia Exports registered at 1.72%, below expectations (4.57%) in April
Indonesia Exports registered at 1.72%, below expectations (4.57%) in April

06:38 WTI edges higher to near $78.50 due to drawdown in US inventories, Canada wildfires
West Texas Intermediate (WTI) crude Oil price retraces its recent losses, trading around $78.30 per barrel during Wednesday's Asian session.

WTI price appreciates due to the potential for supply disruptions amid Canadian wildfires.The API Weekly Crude Oil Stock dropped 3.104 million barrels, below the forecasted decline of 1.35 million barrels.OPEC maintained its forecast of an increase of 2.25 million barrels per day in 2024.West Texas Intermediate (WTI) crude Oil price retraces its recent losses, trading around $78.30 per barrel during Wednesday's Asian session. The advance of the crude Oil prices could be attributed to the latest crude Oil supply update from the American Petroleum Institute (API) released on Tuesday. API's Weekly Statistical Bulletin (WSB) provides comprehensive data on refinery operations and the production of major petroleum products in the United States (US) and its regions. For the week ending May 10, the API Weekly Crude Oil Stock dropped 3.104 million barrels, significantly exceeding the forecasted 1.35 million-barrel decline. This sharp decrease completely offset the previous week's gain of 0.509 million barrels. In Canada, concerns have arisen due to wildfires in remote western regions. Of particular worry is a large wildfire nearing Fort McMurray, which serves as the central hub for Canada's Oil sands industry, contributing approximately 3.3 million barrels per day, equivalent to two-thirds of the nation's total output. However, crude Oil prices lost ground due to higher-than-anticipated US producer prices in April, sparking concerns about the Federal Reserve (Fed) potentially maintaining elevated interest rates for an extended period. These higher interest rates can dampen economic activities in the United States, the world's largest oil consumer, affecting Oil demand. The US Bureau of Labor Statistics (BLS) reported that the Producer Price Index (PPI) increased by 0.5% month-over-month in April, surpassing the forecast of 0.3% and rebounding from March's contraction of -0.1%. While the Core PPI, which excludes volatile food and energy prices, also surged by 0.5% MoM, exceeding projections of 0.2%. Additionally, the recent report of OPEC+ (the Organization of the Petroleum Exporting Countries and its allies, led by Russia) showed that member nations surpassed their agreed-upon limit by producing an extra 568,000 barrels per day (bpd) last month. Nevertheless, OPEC maintained an optimistic outlook on global Oil demand, forecasting an increase of 2.25 million barrels per day in 2024 and 1.85 million barrels per day in 2025. WTI US OIL Overview Today last price 78.34 Today Daily Change 0.30 Today Daily Change % 0.38 Today daily open 78.04 Trends Daily SMA20 80.48 Daily SMA50 81.51 Daily SMA100 78.28 Daily SMA200 79.72 Levels Previous Daily High 78.91 Previous Daily Low 77.29 Previous Weekly High 79.56 Previous Weekly Low 76.71 Previous Monthly High 87.12 Previous Monthly Low 80.62 Daily Fibonacci 38.2% 77.91 Daily Fibonacci 61.8% 78.29 Daily Pivot Point S1 77.25 Daily Pivot Point S2 76.46 Daily Pivot Point S3 75.63 Daily Pivot Point R1 78.87 Daily Pivot Point R2 79.71 Daily Pivot Point R3 80.5

06:24 Gold price trades with a mild positive bias, US CPI and PPI data loom
The gold price (XAU/USD) posts modest gains on the weaker US Dollar (USD) on Wednesday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Gold price edges higher on Wednesday amid the softer USD. The growth in gold demand and geopolitical tensions lift the price of precious metals.The US CPI and PPI data on Wednesday could offer some hints about the Fed’s monetary policy path.The gold price (XAU/USD) posts modest gains on the weaker US Dollar (USD) on Wednesday. The rising gold demand from robust over-the-counter (OTC) market investments, consistent central bank purchases, and safe-haven flows amid Middle East geopolitical risk act as a tailwind for XAU/USD. Nonetheless, the Federal Reserve (Fed) officials' hawkish remarks, including Chairman Jerome Powell's suggestion to keep interest rates higher for longer, might drag the yellow metal lower in the near term.

Later on Wednesday, the US Consumer Price Index (CPI) for April will be released, and it could offer insights into the timing of the Fed's initial rate adjustment. Also, the Retail Sales for April will be published, and insight into consumer spending trends will be provided. The hotter-than-estimated inflation data could lead the Fed to a more aggressive stance, which boosts the Greenback and exerts some selling pressure on USD-denominated gold. Daily Digest Market Movers: Gold price gains momentum amid gold investment demand The US Producer Price Index (PPI) rose 2.2% YoY in April, compared to the 1.8% increase in March and matching expectations. The Core PPI jumped 2.4% YoY in the same period, compared to an increase of 2.1% in March. On a monthly basis, the PPI and the core PPI both rose 0.5% MoM in April. Fed Chair Jerome Powell said that inflation is falling slower than expected, and the PPI data provided more justification to keep rates higher for longer. Powell added that more rate hikes likely won't be needed. Kansas City Fed President Jeffrey Schmid noted that inflation remains too high, and the US central bank has more work to do. The annual headline Consumer Price Index (CPI) inflation is expected to ease to 3.4% in April from 3.5% in the first estimates. The Core CPI inflation is estimated to drop to 3.6% in April from 3.8% prior. The US Retail Sales is projected to decline to 0.4% MoM in April from 0.7% in the preliminary reading. Financial markets are currently pricing in nearly 65% odds of a rate cut by the Fed in September 2024, according to the CME's FedWatch Tool. Global gold demand rose by 3% to 1,238 tonnes, making it the strongest first quarter since 2016, according to the World Gold Council's Q1 2024 report. Technical Analysis: Gold price holds a constructive picture The gold price trades on a positive note on the day. According to the four-hour chart, the yellow metal maintains its positive stance unchanged as XAU/USD holds above the key 100-period Exponential Moving Average (EMA). The 14-day Relative Strength Index (RSI) stands in the bullish zone at 60.70, suggesting that the path of least resistance is to the upside.

Any follow-through buying above a high of May 10 at $2,378 could clear the path for a rally to the next major resistance near the $2,400 psychological barrier. A decisive upside break above the mentioned level will expose an all-time high near $2,432 en route to the $2,500 round figure.

On the flip side, the key support level for gold will emerge at the $2,325–$2,330 region, representing the confluence of the lower limit of the descending trend channel, the 100-period EMA, and a low of May 13. The breach of this level will see a drop to the $2,300 round figure, followed by a low of May 2 at $2,281. US Dollar price today The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Australian Dollar. USDEURGBPCADAUDJPYNZDCHFUSD -0.11% -0.10% -0.09% -0.30% -0.06% -0.24% -0.10%EUR0.11% 0.01% 0.02% -0.19% 0.05% -0.13% 0.02%GBP0.09% -0.01% 0.01% -0.20% 0.03% -0.14% 0.01%CAD0.09% -0.02% 0.00% -0.19% 0.03% -0.16% -0.01%AUD0.29% 0.19% 0.20% 0.22% 0.23% 0.07% 0.21%JPY0.07% -0.04% -0.04% -0.02% -0.24% -0.18% -0.04%NZD0.23% 0.13% 0.15% 0.14% -0.05% 0.18% 0.15%CHF0.09% -0.02% 0.00% 0.01% -0.20% 0.03% -0.15% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote). Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

06:00 US CPI data expected to show slow progress towards 2% target
The high-impact US Consumer Price Index (CPI) inflation data for April will be published by the Bureau of Labor Statistics (BLS) on Wednesday at 12:30 GMT.

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50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}The US Consumer Price Index is set to rise 3.4% YoY in April, following the 3.5% increase in March.Annual core CPI inflation is expected to edge lower to 3.6% in April.The inflation report could influence the timing of the Fed’s policy pivot.The high-impact US Consumer Price Index (CPI) inflation data for April will be published by the Bureau of Labor Statistics (BLS) on Wednesday at 12:30 GMT. Inflation data could alter the market’s pricing about the timing of the Federal Reserve (Fed) policy pivot, while uncertainty regarding the rate outlook grows amid policymakers’ hawkish tone and disappointing macroeconomic data releases. Hence, a surprise in CPI data could ramp up the US Dollar’s (USD) volatility. What to expect in the next CPI report? Inflation in the United States (US) is forecast to rise at an annual pace of 3.4% in April, at a slightly softer pace than the 3.5% increase recorded in March. The core CPI inflation rate, which excludes volatile food and energy prices, is forecast to edge lower to 3.6% from 3.8% in the same period. The monthly CPI and the core CPI are seen increasing 0.4% and 0.3%, respectively, in April. Several Fed policymakers have recently voiced their concerns over the inflation outlook. Richmond Fed President Thomas Barkin argued that a patient approach to policy would eventually reduce inflation toward the 2% target, while Minneapolis Fed President Neel Kashkari noted that the lack of progress in inflation was raising questions about how restrictive the policy is. Moreover, Fed Board of Governors member Michelle Bowman said that she doesn’t rate cuts as warranted this year, adding that she would like to see a number of better inflation data. Previewing the April inflation report, “we expect next week's CPI report to show that core inflation slowed to a "soft" 0.3% m/m pace after posting a third consecutive strong gain at 0.4% in March,” said TD Securities analysts. “The headline likely rose by a softer 0.3% m/m despite another notable gain in energy prices. Note that our unrounded core CPI forecast at 0.27% m/m suggests larger risks for a dovish surprise to a rounded 0.2% increase.” How could the US Consumer Price Index report affect EUR/USD? Following the 0.3% increase recorded in January, the CPI and the core CPI rose 0.4% both in February and March, reviving concerns over a slowdown in the disinflationary progress and causing market participants to refrain from forecasting a rate cut until September. Meanwhile, the BLS reported an increase of 175,000 in Nonfarm Payrolls in April. This marked the smallest growth in payrolls since October and pointed to loosening conditions in the labor market. Other data from the US showed that the business activity in the manufacturing and service sectors contracted in April, with the ISM Manufacturing and Services Purchasing Managers Index (PMI) both coming in below 50. Additionally, the US Department of Labor announced that there were 231,000 first-time applications for unemployment benefits in the week ending May 4, the highest print since early November. Despite the strong inflation figures seen in the last couple of months, disappointing data releases keep the optimism about a policy pivot in September alive. According to the CME FedWatch Tool, investors are currently pricing in a 35% probability of a no change in the Fed interest rate in September. Hence, the market positioning suggests that the US Dollar faces a two-way risk heading into the inflation data release. In case the monthly core CPI rises 0.4% or more, it could revive expectations for a policy hold in September. In this scenario, US Treasury bond yields are likely to gain traction and allow the USD to gather strength against its major rivals. On the other hand, a reading of 0.2% or lower could have the opposite impact on the currency’s valuation. Eren Sengezer, European Session Lead Analyst at FXStreet, offers a brief technical outlook for EUR/USD and explains: “The Relative Strength Index (RSI) indicator on the daily chart stays above 50 but EUR/USD needs to flip 1.0800-1.0820 area, where the 200-day and the 100-day Simple Moving Averages (SMA) are located, into support to extend its uptrend. Above this area, 1.0900 (static level) could be seen as interim resistance before 1.0980 (March 8 high).” “If EUR/USD fails to clear 1.0800-1.0820 area, buyers could get discouraged. In this case, supports could be seen at 1.0720 (20-day SMA) and 1.0600 (April 16 low, static level).” Economic Indicator Consumer Price Index (YoY) Inflationary or deflationary tendencies are measured by periodically summing the prices of a basket of representative goods and services and presenting the data as The Consumer Price Index (CPI). CPI data is compiled on a monthly basis and released by the US Department of Labor Statistics. The YoY reading compares the prices of goods in the reference month to the same month a year earlier.The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish. Read more. Next release: Wed May 15, 2024 12:30 Frequency: MonthlyConsensus: 3.4%Previous: 3.5%Source: US Bureau of Labor Statistics Why it matters to traders? The US Federal Reserve has a dual mandate of maintaining price stability and maximum employment. According to such mandate, inflation should be at around 2% YoY and has become the weakest pillar of the central bank’s directive ever since the world suffered a pandemic, which extends to these days. Price pressures keep rising amid supply-chain issues and bottlenecks, with the Consumer Price Index (CPI) hanging at multi-decade highs. The Fed has already taken measures to tame inflation and is expected to maintain an aggressive stance in the foreseeable future.
US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.

05:23 Australian Dollar gains ground due to risk-on mood, US CPI awaited
The Australian Dollar (AUD) remains steady with a positive sentiment despite the lower-than-expected Wage Price Index (Q1) released on Wednesday by the Australian Bureau of Statistics.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}The Australian Dollar appreciates due to the improved risk sentiment on Wednesday.The Australian government is targeting headline inflation and seeking to ease cost-of-living pressures by earmarking billions.The US Dollar lost ground as investors digested higher-than-expected US PPI data.The Australian Dollar (AUD) remains steady with a positive sentiment despite the lower-than-expected Wage Price Index (Q1) released on Wednesday by the Australian Bureau of Statistics. This index serves as an indicator of labor cost inflation. The appreciation of the Aussie Dollar could be attributed to the improved risk appetite. The Australian Budget for 2024-25 has returned to a deficit after recording a surplus of $9.3 billion in 2023-24. The Australian government aims to tackle headline inflation and alleviate the cost of living pressures by allocating billions to reduce energy bills and rent, alongside initiatives to lower income taxes. The US Dollar Index (DXY), which gauges the performance of the US Dollar (USD) against six major currencies, is experiencing continued losses for the second session. Investors have digested higher-than-expected US Producer Price Index data for April while awaiting the Consumer Price Index report scheduled for Wednesday.Federal Reserve Chair Jerome Powell has anticipated a continued decline in inflation. Powell expressed less confidence in the disinflation outlook compared to previous assessments. He also highlighted that Gross Domestic Product (GDP) growth is expected to reach 2% or higher, attributing this positive forecast to the strength of the labor market. Daily Digest Market Movers: Australian Dollar appreciates due to improved risk appetite Australia’s Wage Price Index (QoQ) showed a 0.8% increase in the first quarter, falling slightly below the anticipated rise of 0.9%. On a year-over-year basis, it saw a 4.1% increase, also slightly lower than the expected 4.2% rise. The US Bureau of Labor Statistics (BLS) reported that the Producer Price Index (PPI) increased by 0.5% month-over-month in April, surpassing the forecast of 0.3% and rebounding from March's contraction of -0.1%. Additionally, the Core PPI, which excludes volatile food and energy prices, also surged by 0.5% MoM, exceeding projections of 0.2%. A Reuters report cited Treasurer of Australia Jim Chalmers, expressing his expectation that the current headline inflation rate of 3.6% will return to the Reserve Bank of Australia’s target range of 2-3% by the end of the year. In the event that this scenario unfolds, it is likely that the central bank will consider cutting interest rates earlier than markets had anticipated. Australia's Treasury announced on Sunday that they forecasted that inflation could re-enter the Reserve Bank of Australia's (RBA) target range by the end of 2024. In their December outlook, officials predicted that CPI inflation would decrease to 3.75% by mid-2024 and 2.75% by mid-2025, aligning it with the RBA's target range. Federal Reserve Bank of New York conducted a consumer sentiment survey, indicating that US consumers anticipate a broad acceleration in inflation over the next year, with expectations reaching 3.3%. This marks an increase from the 3.0% figure reported in March for consumer one-year inflation expectations. According to Reuters, Fed Vice Chair Philip Jefferson advocated for the retention of current interest rates until signs of inflation easing become more apparent. Technical Analysis: Australian Dollar maintains its position above 0.6600 The Australian Dollar trades around 0.6630 on Wednesday. The AUD/USD pair is consolidating within a symmetrical triangle pattern. Moreover, the 14-day Relative Strength Index (RSI) indicates a bullish bias, remaining above the 50 level. The AUD/USD pair may challenge the upper boundary near the swing area at 0.6650. A breakthrough above this level could lead the pair to revisit March's high at 0.6667, with further upward momentum possibly targeting the psychological level of 0.6700. On the downside, the psychological level of 0.6600 appears as the immediate support, followed by the 14-day Exponential Moving Average (EMA) at 0.6585. If the pair breaks below this EMA, it might face additional selling pressure, potentially moving toward the region around the lower boundary of the symmetrical triangle around the support level of 0.6465. AUD/USD: Daily ChartAustralian Dollar price today The table below shows the percentage change of the Australian Dollar (AUD) against listed major currencies today. The Australian Dollar was the strongest against the US Dollar. USDEURGBPCADAUDJPYNZDCHFUSD -0.06% -0.05% -0.04% -0.12% -0.04% -0.05% -0.05%EUR0.05% 0.01% 0.01% -0.08% 0.01% 0.01% 0.02%GBP0.05% -0.02% 0.00% -0.09% 0.00% 0.01% 0.02%CAD0.02% -0.03% -0.02% 0.05% -0.04% 0.05% -0.04%AUD0.11% 0.08% 0.09% 0.09% 0.09% 0.08% 0.09%JPY0.04% 0.00% 0.00% -0.01% -0.08% -0.01% -0.01%NZD0.04% 0.00% 0.00% 0.00% -0.07% 0.00% 0.02%CHF0.04% -0.02% 0.00% 0.00% -0.07% 0.00% -0.01% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote). Australian Dollar FAQs What key factors drive the Australian Dollar? One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs. How does the price of Iron Ore impact the Australian Dollar? Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD. How does the Trade Balance impact the Australian Dollar? The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

04:30 Australia Wage Price Index (QoQ) registered at 0.8%, below expectations (0.9%) in 1Q
Australia Wage Price Index (QoQ) registered at 0.8%, below expectations (0.9%) in 1Q

04:30 PBoC keeps Medium-term Lending Facility (MLF) rate unchanged at 2.5%
The People’s Bank of China (PBOC), China's central bank kept the one-year Medium-term Lending Facility (MLF) rate steady at 2.50% on Wednesday.

The People’s Bank of China (PBOC), China's central bank kept the one-year Medium-term Lending Facility (MLF) rate steady at 2.50% on Wednesday. The PBoC also kept the five-year LPRs unchanged.

The one-year MLF was last cut in August 2023, from 2.65%.

04:30 Australia Wage Price Index (YoY) came in at 4.1%, below expectations (4.2%) in 1Q
Australia Wage Price Index (YoY) came in at 4.1%, below expectations (4.2%) in 1Q

04:23 PBoC sets USD/CNY reference rate at 7.1049 vs 7.1053 previous
The People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead on Wednesday at 7.1049 as compared to the previous day's fix of 7.1053 and 7.2279 Reuters estimates.

The People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead on Wednesday at 7.1049 as compared to the previous day's fix of 7.1053 and 7.2279 Reuters estimates.

04:14 EUR/USD holds above 1.0800 ahead of Eurozone GDP, according to US CPI data
The EUR/USD pair trades with a bullish bias around 1.0815 during the early Asian trading hours on Wednesday.

EUR/USD gains momentum 1.0815 on Wednesday. Fed’s Schmid said inflation remains too high and the US central bank has more work to do.The Eurozone ZEW Economic Sentiment Survey came in better than expected, improving to 47.0 in May, compared to 43.9 prior. The EUR/USD pair trades with a bullish bias around 1.0815 during the early Asian trading hours on Wednesday. Markets might turn to a cautious mood later in the day ahead of key economic data from the Eurozone and the US. The first reading of the Eurozone Gross Domestic Product (GDP) for the first quarter and the US April Consumer Price Index (CPI) will be the highlights on Wednesday.

On Tuesday, Federal Reserve (Fed) Chairman Jerome Powell said that inflation is falling slower than expected, and the PPI data provided more justification to keep rates higher for longer. Powell added that it’s unlikely in his view that the central bank would have to raise further interest rates, even if the chances for rate cuts have become less. Additionally, Kansas City Fed President Jeffrey Schmid noted that inflation remains too high and the US central bank has more work to do. These hawkish comments might lift the US Dollar (USD) and weigh on the major pair in the near term.

However, the US CPI data is due later in the day, and it might influence the Fed interest rate decision in the next meeting. The annual headline CPI inflation is expected to ease to 3.4% in April from 3.5% in the previous reading. The Core CPI inflation is projected to drop to 3.6% in April from 3.8% prior. If the forthcoming CPI data meets expectations, it could trigger the prospect of rate cuts. This, in turn, might drag the Greenback lower and act as a tailwind for EUR/USD.

Across the pond, the upbeat ZEW Economic Sentiment Survey has provided some support to the major pair for the time being. The Eurozone ZEW Economic Sentiment Survey improved to 47.0 in May from 43.9 in the previous month, above the estimation of 46.1. The attention will shift to the European GDP growth numbers, which are estimated to grow by 0.3% QoQ in Q1, while the Annualized GDP growth is forecast to hold steady at 0.4% YoY. EUR/USD Overview Today last price 1.0817 Today Daily Change -0.0003 Today Daily Change % -0.03 Today daily open 1.082 Trends Daily SMA20 1.0724 Daily SMA50 1.0787 Daily SMA100 1.0826 Daily SMA200 1.0791 Levels Previous Daily High 1.0826 Previous Daily Low 1.0767 Previous Weekly High 1.0791 Previous Weekly Low 1.0724 Previous Monthly High 1.0885 Previous Monthly Low 1.0601 Daily Fibonacci 38.2% 1.0803 Daily Fibonacci 61.8% 1.079 Daily Pivot Point S1 1.0783 Daily Pivot Point S2 1.0746 Daily Pivot Point S3 1.0724 Daily Pivot Point R1 1.0841 Daily Pivot Point R2 1.0863 Daily Pivot Point R3 1.0899

03:43 Fed's Schmid: Inflation is still too high, Fed has more work to do
Kansas City Federal Reserve Bank President Jeffrey Schmid spoke at the regional bank's agricultural summit on Tuesday.

03:06 USD/JPY extends its upside above 156.50 ahead of US CPI, Retail Sales data
The USD/JPY pair trades in positive territory for the fourth consecutive day near 156.55 on Wednesday during the early Asian session.

USD/JPY extends the rally around 156.55 in Wednesday’s early Asian session. Fed’s Powell said central bank will keep rates on hold for an extended period as inflation eases slower than expected. Japanese government will closely work with the BoJ on FX market and will take all possible measures if necessary.The USD/JPY pair trades in positive territory for the fourth consecutive day near 156.55 on Wednesday during the early Asian session. The uptick of the pair is bolstered by the speculation that the Federal Reserve (Fed) might maintain rates higher for longer amid the elevated inflation. However, the fear that Japanese authorities could intervene in the foreign exchange markets might cap the upside of USD/JPY.

The Fed Chair Jerome Powell reiterated Tuesday that inflation is easing slower than expected, and the April PPI figure provided more justification to keep rates higher for longer. Nonetheless, Powell further stated that he does not expect the Fed to raise rates. The hawkish remarks from Fed officials might boost the US Dollar (USD) and create a tailwind for USD/JPY.

On Tuesday, the Bureau of Labor Statistics revealed that the US Producer Price Index (PPI) rose 2.2% YoY in April, compared to the 1.8% increase in March (revised from 2.1%) and matching the expectation. Meanwhile, the Core PPI, excluding volatile food and energy costs, jumped 2.4% YoY in the same period, compared to an increase of 2.1% in March. On a monthly basis, the PPI and the core PPI both rose 0.5% MoM in April.

Looking ahead, investors will focus on the US Consumer Price Index (CPI) and Retail Sales reports for April. These reports could offer insights into the timing of the Fed's initial rate adjustment.

On the JPY’s front, Finance Minister Shunichi Suzuki said on Tuesday that the Japanese government will closely work with the Bank of Japan (BoJ) on the foreign exchange (FX) market and will take all possible measures if necessary. The fear of further FX intervention from Japanese authorities might provide some support to the Japanese Yen (JPY) and cap the pair’s upside. USD/JPY Overview Today last price 156.52 Today Daily Change 0.09 Today Daily Change % 0.06 Today daily open 156.43 Trends Daily SMA20 155.31 Daily SMA50 152.64 Daily SMA100 150.09 Daily SMA200 148.87 Levels Previous Daily High 156.79 Previous Daily Low 156.16 Previous Weekly High 155.95 Previous Weekly Low 152.8 Previous Monthly High 160.32 Previous Monthly Low 150.81 Daily Fibonacci 38.2% 156.55 Daily Fibonacci 61.8% 156.4 Daily Pivot Point S1 156.13 Daily Pivot Point S2 155.83 Daily Pivot Point S3 155.51 Daily Pivot Point R1 156.76 Daily Pivot Point R2 157.09 Daily Pivot Point R3 157.38

02:20 GBP/USD consolidates its gains above 1.2580, all eyes on US CPI data
The GBP/USD pair consolidates its gains around 1.2590 during the early Asian session on Wednesday.

GBP/USD takes a breather near 1.2590 in Wednesday’s early Asian session. The US PPI came in line with expectations, rising by 2.2% YoY in April, compared to the 1.8% increase in March. The UK Unemployment Rate rose to 4.3%, and private-sector wage growth slowed. The GBP/USD pair consolidates its gains around 1.2590 during the early Asian session on Wednesday. The major pair holds above the key 100-day Exponential Moving Average (EMA) but remains capped under the 1.2600 hurdle. The US Consumer Price Index and Retail Sales report for April will be in the spotlight. Also, the Fed’s Kashkari and Bowman are due to speak.

Wholesale inflation, as measured by the Producer Price Index (PPI), hit its highest rate in a year, the Bureau of Labor Statistics showed Tuesday. The US PPI figure rose 2.2% on a yearly basis in April, compared to the 1.8% increase recorded in March (revised from 2.1%), and came in line with the estimation. The Core PPI, which excludes food and energy costs, climbed 2.4% YoY in the same period, compared to an increase of 2.1% in the previous reading and matching the expectation. On a monthly basis, the PPI and the core PPI both rose 0.5% MoM in April.

The US Federal Reserve (Fed) said on Tuesday that the April PPI provides more justification to keep rates higher for longer, but it does not necessarily mean the Fed will need to hike again. Meanwhile, Cleveland Fed President Loretta Mester stated that she would still like the central bank to start tapering asset purchases this year, adding that the Fed is in a "really good place" to study the economy before charting the rate path.

Investors await the US CPI inflation data on Wednesday for fresh impetus. The hotter-than-expected inflation reading could dampen hope for a Fed rate cut this year and boost the Greenback against the Pound Sterling (GBP).

On the other hand, the UK employment reports showed signs of cooling, which prompted the expectation that the Bank of England (BoE) might cut interest rates in the coming months. The ILO Unemployment Rate rose to 4.3% in three months to March from 4.2% in the previous reading, the highest since last summer. While overall wage growth excluding bonuses, remained unchanged at 6.0% in the same reporting period,. The UK Employment Change arrived at -177K in the three months to March, versus a -156K decrease in the previous reading, the UK Office for National Statistics reported on Tuesday.

The financial markets expect the BoE to cut rates before the Fed as early as June or August. This, in turn, might weigh on the Cable and cap the upside of the GBP/USD pair in the near term.

GBP/USD Overview Today last price 1.2588 Today Daily Change 0.0029 Today Daily Change % 0.23 Today daily open 1.2559 Trends Daily SMA20 1.249 Daily SMA50 1.2597 Daily SMA100 1.2636 Daily SMA200 1.2542 Levels Previous Daily High 1.2569 Previous Daily Low 1.2518 Previous Weekly High 1.2594 Previous Weekly Low 1.2446 Previous Monthly High 1.2709 Previous Monthly Low 1.23 Daily Fibonacci 38.2% 1.2549 Daily Fibonacci 61.8% 1.2537 Daily Pivot Point S1 1.2528 Daily Pivot Point S2 1.2497 Daily Pivot Point S3 1.2477 Daily Pivot Point R1 1.2579 Daily Pivot Point R2 1.26 Daily Pivot Point R3 1.2631

01:27 AUD/USD steadies despite rising US inflation, traders eye Aussie WPI
The Australian Dollar registered gains against the US Dollar on Tuesday, even though inflation in the United States (US) edged, spurring hawkish remarks by Fed Chair Jerome Powell.

AUD/USD holds at 0.6624, resisting pressure from Powell's hawkish stance after US PPI rises 0.5% MoM.Higher April PPI fuels concerns over extended inflation; Powell's confidence in disinflation wanes, foresees 2% GDP growth.Australia's 2024-25 budget returns to deficit; ANZ cites fiscal easing of 0.25-0.5% GDP.Key Australian data ahead: Wage Price Index expected stable at 0.9% QoQ, 4.2% YoY.The Australian Dollar registered gains against the US Dollar on Tuesday, even though inflation in the United States (US) edged, spurring hawkish remarks by Fed Chair Jerome Powell. The AUD/USD trades at 0.6624, virtually unchanged as Wednesday’s Asian session commences. AUD/USD holds above 0.6600 as markets await Australia's Wage Price IndexFederal Reserve Chair Jerome Powell hit the wires after releasing the Producer Price Index (PPI). He said that, although he anticipates inflation to continue declining, he is less confident about the disinflation outlook than he was previously. Powell also noted that the Gross Domestic Product (GDP) is expected to grow by 2% or more, attributing this positive forecast to the strength of the labor market. Meanwhile, the US Bureau of Labor Statistics (BLS) revealed the Producer Price Index (PPI) rose by 0.5% MoM in April, above the 0.3% consensus and March’s -0.1% contraction. Core PPI also jumped by 0.5% MoM, above projections of 0.2%. On Australia’s front, the budget for 2024-25 returns to a deficit after printing a surplus of $9.3 billion in 2023-24. ANZ analysts commented, "The amount of net new spending in 2024-25 ($9.5bn) is consistent with our previously expressed view that the Budget would contain a discretionary fiscal easing equivalent to around ¼ to ½% of GDP in that year.” In the meantime, the Aussie’s economic docket will feature the release of the latest Wage Price Index (WPI), which is expected to remain steady at 0.9% QoQ and 4.2% YoY. AUD/USD Price Analysis: Technical outlook In the short term, the pair is neutral to upward biased, trading near this week’s high. Bulls are eyeing a break of the May 3 daily high of 0.6648, which could pave the way for further gains. In that outcome, the next key resistance level would be 0.6700, followed by the year-to-date (YTD) high of 0.6728. Once surpassed, up next would be the December 28 high of 0.6871 Conversely, if sellers drag the AUD/USD exchange rate below 0.6600, look for a pullback beneath the 100-day moving average (DMA) at 0.6569, followed by the 50-DMA at 0.6546. Once cleared, the next stop would be the 200-DMA at 0.6521.AUD/USD Overview Today last price 0.6624 Today Daily Change 0.0016 Today Daily Change % 0.24 Today daily open 0.6608 Trends Daily SMA20 0.6527 Daily SMA50 0.6543 Daily SMA100 0.6573 Daily SMA200 0.6522 Levels Previous Daily High 0.6629 Previous Daily Low 0.6586 Previous Weekly High 0.6638 Previous Weekly Low 0.6558 Previous Monthly High 0.6644 Previous Monthly Low 0.6362 Daily Fibonacci 38.2% 0.6612 Daily Fibonacci 61.8% 0.6602 Daily Pivot Point S1 0.6586 Daily Pivot Point S2 0.6564 Daily Pivot Point S3 0.6543 Daily Pivot Point R1 0.6629 Daily Pivot Point R2 0.6651 Daily Pivot Point R3 0.6672

01:11 NZD/USD Price Analysis: Bearish trend sustains despite upward movements
On Tuesday, the NZD/USD saw gains but the pair maintains and overall bearish outlook.

The daily RSI and MACD of the NZD/USD highlight a growing buying momentum.The hourly RSI and MACD show a gradual reduction in the bullish momentum as indicators neared overbought conditions.For further upwards movements, the buyers will need to reclaim the main 200-day SMAs.On Tuesday, the NZD/USD saw gains but the pair maintains and overall bearish outlook. Despite a marginal recovery challenge to the 200-day Simple Moving Averages (SMA), momentum stays subdued. Should the pair fail to breach the 200-day SMA in the near term, further downward movement might be impending. The daily Relative Strength Index (RSI) for the NZD/USD pair on the daily chart reflects a positive trend. With the latest reading positioned above the 50 level, the pair is leaning towards positive territory. The Moving Average Convergence Divergence (MACD) exhibits flat green bars which alludes to a continuation of positive momentum, albeit at a stagnant pace. NZD/USD daily chart Comparatively, the hourly RSI has shown fluctuations in positive territory on Tuesday, reaching into the overbought region earlier in the session. The hourly MACD presents decreasing green bars, indicating a slow gradual reduction in the positive momentum as investors may be taking profits ahead of the Asian session. NZD/USD hourly chart With that said, the overall picture shows a downward inclination for the NZD/USD. Given its status relative to the key SMAs of 100 and 200-day SMAs, market participants shouldn’t consider the latest movements as a buying signal, unless the buyers manage to conquer the 200-day SMA, which would brighten the outlook for the pair. NZD/USD Overview Today last price 0.604 Today Daily Change 0.0023 Today Daily Change % 0.38 Today daily open 0.6017 Trends Daily SMA20 0.5956 Daily SMA50 0.601 Daily SMA100 0.6087 Daily SMA200 0.6038 Levels Previous Daily High 0.6032 Previous Daily Low 0.6 Previous Weekly High 0.6041 Previous Weekly Low 0.598 Previous Monthly High 0.6079 Previous Monthly Low 0.5851 Daily Fibonacci 38.2% 0.6012 Daily Fibonacci 61.8% 0.602 Daily Pivot Point S1 0.6 Daily Pivot Point S2 0.5984 Daily Pivot Point S3 0.5968 Daily Pivot Point R1 0.6032 Daily Pivot Point R2 0.6048 Daily Pivot Point R3 0.6064

00:46 Crude Oil finds late bump but still sheds weight on Tuesday as WTI grapples with $78
West Texas Intermediate (WTI) US Crude Oil fell to $77.30 on Tuesday as market sentiment regarding Federal Reserve (Fed) interest rate cut expectations begins to crumble, but a late-day Crude Oil supply update from the American Petroleum Institute (API) helped to bolster barrel bids.

WTI fell back into familiar lows on Tuesday before a late-day jump.API barrel counts fell back further than expected.Broad-market sentiment is struggling under the weight of higher-for-longer Fed rates.West Texas Intermediate (WTI) US Crude Oil fell to $77.30 on Tuesday as market sentiment regarding Federal Reserve (Fed) interest rate cut expectations begins to crumble, but a late-day Crude Oil supply update from the American Petroleum Institute (API) helped to bolster barrel bids. According to barrel counts from the API, Weekly Crude Oil Stocks for the week ended May 10 fell much more than expected. US Crude Oil Stocks tracked by the API recorded a -3.104 million barrel drawdown, well below the forecast -1.35 million barrel decline and entirely eating away the previous week’s 509K barrel gain. Crude Oil prices have been in a slump recently as it looks increasingly likely the ongoing Israel-Palestinian Hamas conflict is not going to spill over to neighboring countries and pose a threat to global Crude Oil production and supply. Further weighing on Crude Oil bids is US inflation, which continues to print higher than expected and keeping the Fed’s hands tied when it comes to interest rate cuts, hobbling broad-market risk appetite as investors look for signs the Fed could cut rates sooner rather than later. US Consumer Price Index (CPI) inflation figures are due on Wednesday and threaten to destabilize intraday market volatility if inflation continues to run hotter than market forecasts can adapt to. WTI technical outlook US Crude Oil trades within a near-term demand zone between $78.00 and $77.00. A bullish extension to the topside will need to overcome the last major swing high near $79.60, while a bearish pierce of technical prices near $77.00 will threaten an extended run into prices set in March. WTI hourly chart WTI daily chart WTI US OIL Overview Today last price 78.04 Today Daily Change -0.72 Today Daily Change % -0.91 Today daily open 78.76 Trends Daily SMA20 80.82 Daily SMA50 81.51 Daily SMA100 78.23 Daily SMA200 79.74 Levels Previous Daily High 79.06 Previous Daily Low 77.41 Previous Weekly High 79.56 Previous Weekly Low 76.71 Previous Monthly High 87.12 Previous Monthly Low 80.62 Daily Fibonacci 38.2% 78.43 Daily Fibonacci 61.8% 78.04 Daily Pivot Point S1 77.76 Daily Pivot Point S2 76.76 Daily Pivot Point S3 76.11 Daily Pivot Point R1 79.41 Daily Pivot Point R2 80.06 Daily Pivot Point R3 81.06

00:03 Fed's Mester: Fed is in a really good place, not in a rush to change rates
As reported by the Wall Street Journal, Federal Reserve (Fed) Bank of Cleveland President Loretta Mester noted in an interview on Tuesday that she believes the Fed is in a "really good place" regarding rates.

As reported by the Wall Street Journal, Federal Reserve (Fed) Bank of Cleveland President Loretta Mester noted in an interview on Tuesday that she believes the Fed is in a "really good place" regarding rates. Key highlights I am not eager to consider interest rate hikes. Fed is in a "really good place" to study the economy before charting rate path. It's too early to really conclude that we stalled out or that inflation is going to reverse. There are definite signs that the real side of thee economy is moderating, and that is helping to bring balance back to the economy.

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Forex News Timeline

11:35 Silver price today: Silver rises, according to FXStreet data Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data.

11:23 Silver Price Forecast: XAG/USD stays on sidelines around $28.60 ahead of US Inflation data Silver price (XAG/USD) trades in a confined range around $28.60 in Wednesday’s European session.

11:22 India Gold price today: Gold rises, according to MCX data Gold prices rose in India on Wednesday, according to data from India's Multi Commodity Exchange (MCX).

11:13 AUD/JPY rises to near 103.50 amid risk-on sentiment AUD/JPY continues its winning streak, hovering around 103.70 during the European session on Wednesday due to the improved risk appetite.

11:00 Turkey Budget Balance up to -177.83B in April from previous -209B Turkey Budget Balance up to -177.83B in April from previous -209B

10:50 Pound Sterling holds into gains on soft US Dollar ahead of US inflation The Pound Sterling (GBP) posts a fresh weekly high at the round-level resistance of 1.2600 against the US Dollar (USD) in Wednesday’s London session.

10:30 Netherlands, The Gross Domestic Product n.s.a (YoY) dipped from previous -0.4% to -0.7% in 1Q Netherlands, The Gross Domestic Product n.s.a (YoY) dipped from previous -0.4% to -0.7% in 1Q

09:59 EUR/USD Price Analysis: Breaks above descending trend channel, the next barrier is seen above 1.0880 The EUR/USD pair extends the rally near 1.0825 on Wednesday during the early European trading hours.

09:53 France Inflation ex-tobacco (MoM) climbed from previous 0.2% to 0.5% in April France Inflation ex-tobacco (MoM) climbed from previous 0.2% to 0.5% in April

09:51 France Consumer Price Index (EU norm) (MoM) meets forecasts (0.6%) in April France Consumer Price Index (EU norm) (MoM) meets forecasts (0.6%) in April

09:51 France Consumer Price Index (EU norm) (YoY) meets forecasts (2.4%) in April France Consumer Price Index (EU norm) (YoY) meets forecasts (2.4%) in April

09:41 Forex Today: US Dollar struggles to find demand as focus shifts to inflation report Here is what you need to know on Wednesday, May 15: The US Dollar (USD) is finding it difficult to stay resilient against its major rivals in the European morning on Wednesday.

09:09 USD/CHF extends losses to near 0.9050 ahead of US inflation data USD/CHF edges lower for the second successive session, trading around 0.9060 during the Asian hours on Wednesday.

08:35 NZD/USD attracts some buyers above 0.6060, focus on US PPI and CPI data The NZD/USD pair gains traction near 0.6055 on Wednesday during the early European trading hours.

08:10 USD/CAD falls to near 1.3650 due to improved risk appetite, improved WTI price USD/CAD has extended losses for the second successive session, trading around 1.3640 during the Asian hours on Wednesday.

07:16 Indonesia Trade Balance came in at $3.56B, above expectations ($3.3B) in April Indonesia Trade Balance came in at $3.56B, above expectations ($3.3B) in April

07:16 Indonesia Imports below expectations (8.69%) in April: Actual (4.62%) Indonesia Imports below expectations (8.69%) in April: Actual (4.62%)

07:04 Indonesia Exports registered at 1.72%, below expectations (4.57%) in April Indonesia Exports registered at 1.72%, below expectations (4.57%) in April

06:38 WTI edges higher to near $78.50 due to drawdown in US inventories, Canada wildfires West Texas Intermediate (WTI) crude Oil price retraces its recent losses, trading around $78.30 per barrel during Wednesday's Asian session.

06:24 Gold price trades with a mild positive bias, US CPI and PPI data loom The gold price (XAU/USD) posts modest gains on the weaker US Dollar (USD) on Wednesday.

06:00 US CPI data expected to show slow progress towards 2% target The high-impact US Consumer Price Index (CPI) inflation data for April will be published by the Bureau of Labor Statistics (BLS) on Wednesday at 12:30 GMT.

05:23 Australian Dollar gains ground due to risk-on mood, US CPI awaited The Australian Dollar (AUD) remains steady with a positive sentiment despite the lower-than-expected Wage Price Index (Q1) released on Wednesday by the Australian Bureau of Statistics.

04:30 Australia Wage Price Index (QoQ) registered at 0.8%, below expectations (0.9%) in 1Q Australia Wage Price Index (QoQ) registered at 0.8%, below expectations (0.9%) in 1Q

04:30 PBoC keeps Medium-term Lending Facility (MLF) rate unchanged at 2.5% The People’s Bank of China (PBOC), China's central bank kept the one-year Medium-term Lending Facility (MLF) rate steady at 2.50% on Wednesday.

04:30 Australia Wage Price Index (YoY) came in at 4.1%, below expectations (4.2%) in 1Q Australia Wage Price Index (YoY) came in at 4.1%, below expectations (4.2%) in 1Q

04:23 PBoC sets USD/CNY reference rate at 7.1049 vs 7.1053 previous The People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead on Wednesday at 7.1049 as compared to the previous day's fix of 7.1053 and 7.2279 Reuters estimates.

04:14 EUR/USD holds above 1.0800 ahead of Eurozone GDP, according to US CPI data The EUR/USD pair trades with a bullish bias around 1.0815 during the early Asian trading hours on Wednesday.

03:43 Fed's Schmid: Inflation is still too high, Fed has more work to do Kansas City Federal Reserve Bank President Jeffrey Schmid spoke at the regional bank's agricultural summit on Tuesday.

03:06 USD/JPY extends its upside above 156.50 ahead of US CPI, Retail Sales data The USD/JPY pair trades in positive territory for the fourth consecutive day near 156.55 on Wednesday during the early Asian session.

02:20 GBP/USD consolidates its gains above 1.2580, all eyes on US CPI data The GBP/USD pair consolidates its gains around 1.2590 during the early Asian session on Wednesday.

01:27 AUD/USD steadies despite rising US inflation, traders eye Aussie WPI The Australian Dollar registered gains against the US Dollar on Tuesday, even though inflation in the United States (US) edged, spurring hawkish remarks by Fed Chair Jerome Powell.

01:11 NZD/USD Price Analysis: Bearish trend sustains despite upward movements On Tuesday, the NZD/USD saw gains but the pair maintains and overall bearish outlook.

00:03 Fed's Mester: Fed is in a really good place, not in a rush to change rates As reported by the Wall Street Journal, Federal Reserve (Fed) Bank of Cleveland President Loretta Mester noted in an interview on Tuesday that she believes the Fed is in a "really good place" regarding rates.

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