Forex Today – Asian Session: Central banks return to the fore

A data-driven sell-off led the USD Index (DXY) to give up some of its recent advance amid lower yields across the curve. The BoE left rates unchanged and opened the door to an earlier-than-expected rate cut, reinforcing policy divergence between the Fed and its G10 counterparts.

Here's what you need to know on Friday, May 10:

The US Dollar Index (DXY) corrected lower, shelving three consecutive daily gains amid declining yields. On May 10, preliminary Michigan consumer sentiment will take center stage alongside speeches from the Fed's Bowman, Goolsbee and Barr.

EUR/USD regained some balance along with the improved tone in the broader risk space. The ECB will publish its accounts for the April meeting on May 10.

The GBP/USD pair posted modest gains above 1.2500, after the BoE's dovish stance took the pair to new lows near 1.2440. In the UK, GDP figures will be released on May 10, along with industrial and manufacturing production, construction output, trade balance, NIESR's monthly GDP tracker and the BoE's Huw Pill speech.

USD/JPY sailed in an unresolved range around 155.50, maintaining its positive weekly behavior well. Household spending will be released on May 10, followed by bank loans, foreign investment in bonds and the Eco Watchers survey.

AUD/USD shook off a two-session losing streak and regained the zone above the 0.6600 barrier amid broad-based improvement in the risk complex. The next release in Australia will be the Wage Price Index on May 15.

WTI prices fell slightly after the move near $80 per barrel lacked continuity.

Gold prices rose noticeably to multi-day highs near the $2,340 area on the back of dollar weakness and declining US yields. Silver followed suit and rose more than 3%, surpassing $28.00 per ounce, or two-week highs.