XE Market Analysis: Asia – May 26, 2021

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The DXY reclaimed the 90 handle in N.Y. on Wednesday, with short covering ahead of key U.S. data the likely driver. The USD posted gains against all its major counterparts, in anticipation of the slew of data due Thursday and Friday, including the Fed’s favored inflation indicator, the PCE deflator on Friday. Wall Street was mildly higher, though here too, trade was cautious ahead of the data. Yields edged higher as well in afternoon trade. Thursday’s U.S. calendar has the second look at Q1 GDP, expected to be revised higher to 6.7% from 6.4%.