Forex Today: US Dollar Retreats on Fiscal Concerns, Pound Sterling Hits Multi-Year Highs

Forex Today: US Dollar Retreats on Fiscal Concerns, Pound Sterling Hits Multi-Year Highs

On Friday, May 23, the US Dollar (USD) struggled to maintain its position against major currencies after showing only minimal gains on Thursday. Concerns over the growing US fiscal deficit weighed heavily on the Greenback, contributing to its retreat.

Market participants are keeping an eye on key economic data releases scheduled for the day. The European Central Bank (ECB) will publish the Negotiated Wage Rates figures for the first quarter, which could influence the euro’s trajectory. In the United States, New Home Sales data for April is the primary economic indicator expected to impact market sentiment later in the afternoon.

As the trading week draws to a close and the weekend approaches, traders remain attentive to speeches from central bank officials, which could provide further insights into future monetary policy directions.

Overall, the currency markets are navigating a mix of cautious optimism and concern, with the Pound Sterling standing out by reaching multi-year highs amid the backdrop of a weaker US Dollar.