Currency Market Update: Key Indicators to Watch – US PCE and German CPI

The US Dollar Index (DXY) closed Thursday’s session near a two-day low of 99.20 after dropping from earlier highs of 100.50. The release of important US economic data, including inflation figures, consumer sentiment, and trade balance will be the main focus of discussion. In addition, speeches from Fed members Logan and Bostic are also expected.

The Dollar’s decline led to a boost in EUR/USD, pushing it closer to the 1.1400 mark. Germany’s Retail Sales and inflation rate will be the main events in the country.

GBP/USD made a partial recovery from recent losses and moved towards the important resistance level of 1.3500. In the UK, various data such as mortgage approvals, manufacturing PMI, and housing prices will be released on June 2.

USD/JPY experienced a sharp drop to the 144.00 zone after reaching highs of 146.30 earlier in the day, driven by a rise in demand for the Japanese yen. Important economic data, including unemployment rate and retail sales, will be published in Japan.

AUD/USD also saw gains as it rose along with other risk-associated currencies, breaking a three-day losing streak and reaching the 0.6460 level. In Australia, data on building permits, private house approvals, and private sector credit will be released to wrap up the week.

Concerns over demand caused WTI prices to fall below the crucial $60.00 per barrel mark. Unexpectedly, the EIA reported a decline in US crude oil inventories.

Gold prices saw a significant jump, testing the $3,330 level per troy ounce, thanks to the decline in the US Dollar. Additionally, silver prices also rebounded, reaching the $33.50 per ounce level after two days of losses.

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