U.S. Dollar In Positive Territory After Economic Data
May 31 2021 - 12:20AM
RTTF2
The U.S. dollar held gains against most major opponents in Asian
trading on Monday, as a key gauge of inflation accelerated in
April, well above the U.S. Federal Reserve's 2 percent annual rate
target.
Data from the Commerce Department showed on Friday that U.S.
core personal consumption expenditures index, the Federal Reserve's
key gauge of inflation, rose more-than-expected in April.
Core PCE price index grew 3.1 percent year-on-year in April
following a 1.8 percent increase in March. The rate was forecast to
rise to 2.9 percent.
On a monthly basis, core PCE grew 0.7 percent in April after a
rise of 0.4 percent in the previous month. Economists had forecast
a 0.6 percent rise.
Key economic data due this week include ISM manufacturing index
on Tuesday and ADP private sector employment, initial jobless
claims data and ISM services PMI on Wednesday. Friday features all
important nonfarm payrolls data.
U.S President Joe Biden on Friday unveiled $6 trillion budget
for next year, which proposes spending on infrastructure, education
and other initiatives.
But the budget plan is unlikely to get bipartisan support in the
Senate, as Republicans criticized that Biden's budget will add to
the deficit and debt.
U.S. markets will be closed on account of the Memorial Day
holiday.
The greenback recovered to 1.2183 against the euro and 1.4175
against the pound, from its early lows of 1.2204 and 1.4201,
respectively. The greenback is likely to face resistance around
1.17 against the euro and 1.37 against the pound.
The greenback ticked up to 0.9009 against the franc, off its
prior low of 0.8985. On the upside, 0.91 is possibly seen as its
next resistance level.
On the flip side, the greenback pulled back to 1.2065 against
the loonie, 0.7737 against the aussie and 0.7260 against the kiwi,
after rising to 1.2086, 0.7701 and 0.7231, respectively in prior
deals. The greenback is poised to find support around 1.19 against
the loonie, 0.82 against the aussie and 0.74 against the kiwi.
The greenback was lower against the yen, at a 4-day low of
109.64. If the greenback extends decline, 105.00 is possibly seen
as its next support level.
Data from the Ministry of Economy, Trade and Industry showed
that Japan retail sales dropped a seasonally adjusted 4.5 percent
on month in April - coming in at 12.200 trillion yen.
That missed expectations for a gain of 2.0 percent following the
1.2 percent increase in March.
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