US Dollar Weakens as Investors Await CPI Data
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| Dollar index H4 chart |
US Stock Index Futures Trade Higher as CPI data Expectations Moderate
US stock index futures are showing modest gains in early Tuesday trading, while the benchmark 10-year US Treasury bond yield fluctuates between 3.7% and 3.75%. Investors are anticipating the release of the annual CPI data for May, with expectations of a 4.1% increase, a notable decline from the 4.9% recorded in April.
Analyzing May US Inflation: CPI Data Expectations
The focus of market analysis is currently on May's US inflation figures. Following a period of indecisive action on Monday, the EUR/USD currency pair is showing bullish momentum and has climbed towards the 1.0800 level.
GBP/USD Bounces Back Amid Favorable UK Labor Market Conditions
GBP/USD experienced a sharp decline during the American trading hours on Monday but managed to regain bullish momentum in the European morning session. The latest data from the UK's Office for National Statistics reveals positive labor market conditions, with the ILO Unemployment Rate declining to 3.8% in April from 3.9% in March. Additionally, wage inflation, as measured by the Average Earnings Excluding Bonus, increased to 7.2% from 6.8%. These figures indicate a tight labor market in the UK, leading to a stronger performance of the Pound Sterling against other currencies.
Gold Price Remains Steady Amid USD Weakness and Stagnant T-Bond Yields
The price of gold continues to fluctuate around the $1,960 mark for the second consecutive day on Tuesday. Despite the overall weakness of the US Dollar, the lack of significant movement in US T-bond yields makes it challenging for XAU/USD to establish a clear direction.
USD/JPY Holds Steady, Consolidates After Modest Gains
USD/JPY recorded slight gains on Monday but has entered a consolidation phase during the Asian trading hours. The pair is currently trading relatively calmly around the 139.50 level.
AUD/USD Climbs to One-Month High
AUD/USD extended its uptrend and reached its highest level in a month on Tuesday, nearing the 0.6800 level.
USD/CAD Ends Losing Streak, but Momentum Fades
USD/CAD snapped a five-day losing streak on Monday but failed to sustain its bullish momentum before reaching 1.3400. The pair is now trading lower in early Tuesday trading, hovering near 1.3350.
Bitcoin and Ethereum Show Limited Movement
Bitcoin continues to trade within a tight channel slightly above $26,000, while Ethereum remains relatively stable, clinging to modest recovery gains near $1,750.
In conclusion, the US Dollar is facing weakness ahead of the release of the May CPI data. US stock index futures are displaying modest gains, and the annual CPI increase is expected to moderate compared to the previous month. The performance of major currency