Markets await key PMI releases from the US, Eurozone, and UK, alongside US-Iran negotiations impacting USD sentiment.
The US Dollar (USD) retreated from Tuesday’s gains as investor sentiment improved, with focus shifting to high-stakes US-Iran talks and upcoming economic data. Preliminary May Purchasing Managers’ Index (PMI) reports for Germany, the Eurozone, and the UK will be released, followed by US PMI and weekly Initial Jobless Claims data later in the day.
The USD showed mixed performance this week, strengthening against the Australian Dollar but facing pressure from geopolitical uncertainties. US President Donald Trump indicated negotiations with Iran were nearing completion but warned of potential escalation if no deal materialized. Iran’s leadership signaled openness to diplomacy while issuing warnings of broader conflict if provoked.
Market participants remain cautious as PMI data could signal economic momentum or slowdowns across major economies, influencing central bank policy expectations.