The US Dollar (USD) rebounded on Tuesday as trading resumed following a long weekend in the United States. Early market activity showed improved risk sentiment, supporting the greenback’s recovery.
Investors are now focusing on upcoming economic reports, including April’s Durable Goods Orders and the May Consumer Confidence Index from the Conference Board.
In Europe, the European Commission released business and consumer sentiment data for May, providing additional context for market participants. The USD was notably strong against the New Zealand Dollar, leading gains among major currencies.
The USD Index, which measures the dollar against a basket of currencies, dipped slightly on Monday but recovered on Tuesday morning, approaching 99.50. This movement coincided with US stock futures rising more than 1%, reflecting a more positive risk appetite.
EUR/USD remained under mild pressure, trading near 1.1350, as German consumer confidence data for June showed a slight improvement but still fell short of expectations.
Meanwhile, Bank of Japan Governor Kazuo Ueda noted that inflation in Japan is closer to the target than in decades but remains uncertain due to trade policy risks. The USD/JPY pair climbed above 143.50 following these remarks.
The British Pound weakened against the dollar, falling below 1.3550 after modest gains on Monday. The New Zealand Dollar also declined, trading under 0.6000 ahead of the Reserve Bank of New Zealand’s policy announcement, where a 25 basis point rate cut is widely expected.
Gold prices continued to slide, dropping toward $3,300 as demand for the metal as a safe haven waned.
Key Currency Movements (Tuesday, May 27):
- USD strongest versus NZD with a 0.57% gain.
- USD rose 0.32% against EUR and 0.21% against GBP.
- USD/JPY advanced 0.56%, trading above 143.50.
- EUR/USD hovered near 1.1350 amid weak German consumer confidence.
Market watchers will closely monitor the US economic data releases later in the day for further direction.
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