During the Asian trading session the U.S. Dollar Index slipped off a 5-week peak as investors’ profit taking sent the greenback broadly lower ahead of inflation and other key economic data which are likely to be the impetus for a change in the Fed’s monetary policy. As reported at 10:20 a.m. (JST) in Tokyo, the U.S. Dollar Index, a gauge of the dollar’s strength versus a weighted mixed basket of its peers, fell to 83.015 .DXY, a loss of 0.3% and off of Friday’s high of 83.438 .DXY. The USD/JPY also edged 0.3% lower to trade at 101.56 Yen, moving off of Monday’s high of 102.15 Yen while the EUR/USD edged 0.35% higher to trade at $1.3018, regaining the key $1.30 threshold after Friday’s fall to $1.2935.
Currency analysts say that the greenback’s value is being underpinned by the steady flow of better than expected economic data, the last of these April retail sales which showed Americans spending more on a broad range of goods than analysts had initially foreseen. One currency strategist in Tokyo believes that if upcoming data on industrial production, consumer prices and housing starts reflects an improving U.S. economy then the Dollar’s strength will likely continue to gain momentum as speculation increases that the Fed might ease back on its easing throttle.
Dollar Poised to Resume Rally
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.
... Read more After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.