The USD index retains bullish bias for the third session in a row on Wednesday
After volatile trading, Wall Street stocks finished lower on Tuesday after markets reopened from the Memorial Day holiday. The Dow and the S&P 500 finished the month little changed while the Nasdaq Composite gave up more than 2%. Fresh economic data showed that US consumer confidence declined slightly in May from the previous months. The Dow Jones Industrial Average fell 0.7%, the S&P 500 dipped 0.6% and the Nasdaq Composite eased 0.4%.
Asian markets were mixed on Wednesday as investors stayed cautious amid persistent worries about a possible recession, inflation and rising interest rates globally. In Japan, the Nikkei 225 index gained 0.65%, cheering the decision by parliament to enact a $21 billion extra budget to cap soaring fuel and food prices. Australian S&P/ASX 200 edged 0.32% higher after the government reported the country’s GDP expanded at a 3.2% annualized rate in the first quarter. On the negative side, Hong Kong’s Hang Seng and China’s Shanghai Composite gave up 0.5% and 0.13%, respectively, reversing previous day’s gains.
In Europe, equities opened slightly higher on Wednesday, rebounding at the start of a new month. Interestingly, investors shrugged off fresh economic data that showed German retail sales slumped 5.4% in April amid rising inflation. The upside potential in the regional markets remains limited ahead of next week’s ECB meeting as the central bank could hint at more aggressive tightening.
Meanwhile, the euro stays pressured since a brief rally witnessed at the start of the week. EURUSD pair failed to challenge the 1.0800 mark to come back on the defensive as dollar demand reemerged. The USD index retains bullish bias for the third session in a row on Wednesday but still struggles to overcome the 102.00 mark that remains in the market focus ahead of Friday’s US employment report.