With Canadian GDP and German CPI data on the horizon, the market may be looking to gauge the direction of the U.S. dollar

With Canadian GDP and German CPI data on the horizon, the market may be looking to gauge the direction of the U.S. dollar

29.05.2026 New

In the U.S. currency market the previous day, mixed signals emerged as the April PCE deflator rose 3.8% year-on-year, while the revised Q1 GDP figure was downgraded to an annualized 1.6% quarter-on-quarter.The U.S. dollar remained firm amid concerns over persistently high inflation, but with fears of an economic slowdown lingering, the USD/JPY pair fluctuated within a range of 159.15 to around 159.65 before closing in the low 159 yen range.On the upside, the 159.60 to 160.00 range is likely to be viewed as resistance, while on the downside, the focus will be on whether the pair can hold the 159.00 to 158.80 range. With U.S. April wholesale inventories and the May Chicago PMI scheduled for release today, we will be watching to see if the U.S. dollar’s resilience continues.

European currencies were weighed down by the US dollar’s resilience, while the euro sought direction against the dollar ahead of key eurozone inflation data. The EUR/USD pair traded within a range of 1.1586 to 1.1644 before closing near 1.1634, continuing to consolidate in the low 1.1600s.Resistance is likely to be seen around 1.1650, while support is expected between 1.1600 and 1.1580. With French CPI, preliminary German CPI, and remarks by Bank of England (BOE) Governor Bailey scheduled for today, we will be watching to see how European currencies react to these inflation data releases.

Today’s economic indicators include the revised French GDP for January–March at 3:45 p.m., April consumer spending, and the preliminary May Consumer Price Index (CPI),the Swiss KOF Leading Economic Index for May at 16:00, German unemployment figures and unemployment rate for May at 16:55, remarks by Bank of England (BOE) Governor Bailey at 18:20, details on Japan’s foreign exchange intervention at 19:00, the German Consumer Price Index (CPI, flash estimate) for May at 21:00,21:30 Canada Q1 GDP and March Monthly GDP, U.S. April Wholesale Inventories, and 22:45 U.S. May Chicago PMI. During New York trading hours, Canadian GDP and the U.S. Chicago PMI are likely to be key drivers, while during European trading hours, German CPI will likely be a key factor; we should carefully monitor the reactions of the Canadian dollar, U.S. dollar, and euro.