What you need to know on Wednesday, May 26:
It was another bad day for the greenback, although it held within familiar levels against most major rivals. The EUR and GOLD were the best performers, as EUR/USD peaked at 1.2266 its highest since January.
GBP/USD, on the other hand, eased on poor CBI sales figures, although it settled at around 1.4150. Commodity-linked currencies finished the day pretty much unchanged against the greenback.
Federal Reserve’s Vice Chairman Richard Clarida said that he took notice of the “very unpleasant surprise” resulting from April’s inflation, adding that he agrees with the FOMC Minutes that there could be a time in upcoming meetings to discuss tapering.
Inflation expectations in the US somehow cooled down, as Federal Reserve officials keep pouring cold water on expectations of a change in the current monetary policy.
The dollar fell as government bond yields declined. The yield on the benchmark 10-year Treasury note fell to 1.56%, its lowest in two weeks. Wall Street was unable to take advantage of easing inflation concerns, with the three major indexes ending the day with modest losses.
Gold trades a handful of cents below the $1,900 level, heading firmly higher and poised to break above it. Gold remained unchanged, with WTI trading around $ 65.85 a barrel.
The RBNZ will announce its monetary policy decision early on Wednesday.
Dogecoin price consolidates while DOGE targets $1
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