Forex Today: Japanese inflation data takes centre stage

The US Dollar (USD) managed to reverse part of its recent multi-day pullback on Thursday as investors assessed the stronger-than-expected US business activity readings and the US fiscal front, particularly after President Trump's sweeping tax bill cleared the House of Representatives.

Here's what to watch on Friday, May 23:

The US Dollar Index (DXY) partially trimmed losses and left behind three daily drops in a row, coming closer to the psychological 100.00 barrier. Next on tap across the Atlantic will be the release of New Home Sales and the speech by the Fed's Cook.

EUR/USD came under fresh downside pressure on Thursday, returning to the area below the 1.1300 support. The final Q1 GDP Growth Rate in Germany will take centre stage along the ECB's Negotiated Wage Growth. In addition, the ECB's Lane and Schnable are due to speak.

GBP/USD managed to maintain its weekly recovery in place above 1.3400 the figure despite mixed results from the UK business activity in May. The GfK's Consumer Confidence will be released, seconded by Retail Sales.

After seven consecutive daily pullbacks, USD/JPY attempted a bounce past the 144.00 hurdle, up modestly for the day. The Japanese Inflation Rate will be in the spotlight at the end of the week.

AUD/USD kept its erratic price action on Thursday, this time coming under renewed downward pressure and trading at shouting distance from the 0.6400 contention zone. Next on tap in Oz will be the publication of the RBA's Monthly CPI Indicator on May 28.

WTI added to Wednesday's pessimism and approached the key $60.00 mark per barrel on the back of speculation of further output hikes by the OPEC+.

Gold traded on the back foot despite hitting multi-day peaks near the $3,350 mark per troy ounce on Thursday, always on the back of the renewed improvement in the US Dollar's sentiment. Silver prices could not sustain fresh seven-week peaks near $33.70 per ounce, eventually receding to the area below $33.00.