Here is what you need to know about the important news between May 22nd 2023 and May 26th 2023, where we take a look at the economic data, market news and headlines likely to have the biggest impact on the market prices this week and beyond, as well as the US Dollar, and other key correlated assets.
U.S. dollar index
The USD Index has found some support as US President Joe Biden is scheduled to meet House of Representatives Kevin McCarthy for further negotiations on the US debt-ceiling on Monday. However, investors are still worried that approval for an increase in the US borrowing cap won’t be a cakewalk. House of Representative McCarthy wants a hefty 8% cut in overall spending proposed by Democrats for the budget. While Democrats are ready to cut spending for education and labor enforcement programs by an average of 22%. Therefore, a bipartisan deal is less likely and US President Joe Biden could consider an exercise of his 14th Amendment right in which obligated borrowing will get paid without approval from Republicans.
Gold
Friday’s decent gains in prices of gold was amidst the continuation of the downtrend in open interest, which is indicative that a sustained rebound seems out of favour for the time being. In the meantime, the $1950 region per ounce troy emerges as a solid support for the yellow metal.
Oil.
Prices of WTI charted an inconclusive session on Friday amidst shrinking open interest and increasing volume, exposing some near-term consolidation, while bouts of weakness should not be ruled out either. So far, the $70.00 mark per barrel should hold the initial downside test for the time being.
Stocks
Global traders remain cautious during early Monday as the US policymakers failed to offer any solutions to the looming default woes even as President Joe Biden and US House Republican Speaker Kevin McCarthy agrees to resume debt ceiling talks after initial failures. Looking ahead, the Federal Open Market Committee (FOMC) meeting minutes, preliminary readings of the May month Purchasing Managers Indexes (PMIs) and the Fed’s favourite inflation gauge, namely the US Core PCE Price Index, will be crucial to watch for clear directions.
Economic calendar most important releases – All times are GMT.
Tuesday, May 23, 2023
07:15 EUR French Flash Manufacturing PMI
07:30 EUR German Flash Manufacturing PMI
08:30 GBP Flash Manufacturing PMI
13:45 USD Flash Manufacturing PMI
Wednesday, May 24, 2023
02:00 NZD Official Cash Rate
02:00 NZD RBNZ Monetary Policy Statemen
02:00 NZD RBNZ Rate Statement
06:00 GBP CPI y/y
09:30 GBP BOE Gov Bailey Speaks
13:00 GBP BOE Gov Bailey Speaks
Thursday, May 25, 2023
12:30 USD Prelim GDP q/q
12:30 USD Unemployment Claims
Friday, May 26, 2023
12:30 USD Core PCE Price Index m/m
Thanks for reading! Have a great week!
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