fbpx

Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Dollar index is about to see weekly decline ahead of US consumer data

Dollar index could record a weekly decline if official consumer data reports from United States announced weak results, implying stagnation in spending, as this could darken speculations that the Federal Reserve Bank would reduce scale of its easing program.

Japanese yen retreated versus most of its major peers after Consumer Price Index (CPI) for Ku-area of Tokyo registered a drop by 0.2% during May on annual basis, contracting the fall, however, compared to previous period 0.7% dip. Monthly consumer inflation during May showed a slow down to 0.1% in comparison with the preceding month, when inflation increased by a rate of 0.3%. This gave additional impulse for Bank of Japan to step up stimulus.

“The dollar has been very sensitive to the U.S. data. Clearly if the data gets better, QE will likely be reduced, if the data gets worse, QE could be increased”, stated Imre Speizer , a strategist in Auckland at Westpac Banking Corp. 

The dollar index, which follows US dollar performance against a basket of six major currencies, recorded a slight change at 83.044, as it fell by 0.8% in five days, setting the course for the largest weekly drop since February 1st. Japanese yen lost 0.1% against US dollar, as USD/JPY increased to 100.82. Yen lost 0.1% against the euro as well, with EUR/JPY rose to 131.49. US dollar traded at $1.3036 per euro, after EUR/USD pair hit 1.3060 earlier today.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News