Forex Today: It's PMI-day!!!

The US Dollar (USD) maintained its weekly leg lower well in place weakening to new two-week lows on the back of rising concerns over the US fiscal position in light of President Trump's tax bill and worries over the performance of the US economy.

Here's what to watch on Thursday, May 22:

The US Dollar Index (DXY) retreated for the third consecutive day on Wednesday, breaking below the psychological 100.00 support to hit new two-week troughs. The Chicago Fed National Activity Index is due, seconded by the usual Initial Jobless Claims, Existing Home Sales, and the advanced S&P Global Manufacturing and Services PMIs.

EUR/USD surpassed the key 1.1300 barrier and advanced to new two-week highs, always on the back of the intense sell-off in the Greenback. The preliminary HCOB Manufacturing and Services PMIs are expected in Germany and the euro area, along with Germany's IFO Business Climate and the release of the ECB Monetary Policy Meeting Accounts. In addition, the ECB's Elderson and De Guindos are due to speak.

GBP/USD reached the 1.3470 zone for the first time since February 2022 following the weaker US Dollar and higher-than-estimated UK inflation data. The Public Sector Net Borrowing figures will be published, followed by the CBI Industrial Trends Orders, and the flash S&P Global Manufacturing and Services PMIs. Furthermore, the BoE's Pill and Breeden will speak.

There was no respite for the downward trend in USD/JPY. That said, spot dropped for the seventh day in a row, revisiting the mid-143.00s, or two-week troughs. In Japan, Machinery Orders readings are due, ahead of the advanced Jibun Bank Manufacturing and Services PMIs, and the weekly Foreign Bond Investment data. The BoJ's Noguchi will speak as well.

AUD/USD extended its weekly choppiness and resumed its uptrend, leaving behind Tuesday's decline and retesting the 0.6460 region. The preliminary S&P Global Manufacturing and Services PMIs are due, while the RBA's Hauser is also due to speak.

WTI reversed initial gains just above the $64.00 mark per barrel and deflated below $62.00 amid fears of potential supply disruptions and larger-than-expected weekly inventories, as per the EIA's report.

Gold rose to weekly highs north of the $3,300 mark per troy ounce in response to the selling pressure hurting the US Dollar and persistent geopolitical effervescence. Silver prices, in the meantime, climbed to new three-week tops past the $33.00 mark per ounce.