Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

On Tuesday US dollar rose to a fresh session high versus the Japanese yen after US inflation data met expectations and thus, gave the Federal Reserve Bank leeway to continue asset purchases.

USD/JPY pair extended gains, reaching 95.74, currently the session high, after which consolidation followed at 95.60.

It was reported earlier that consumer prices in the United States rose by a mere 0.1% in May due to higher expenditures on houses and energy. Energy prices added 0.4% despite the fact that gasoline prices remained unchanged. Prices of first necessity goods dropped by 0.1%. Core Consumer Price Index (CPI) in the United States, that excludes volatile elements like food and energy costs, registered a 0.2% increase in May. Preliminary estimates, regarding both Consumer Price Index and Core Consumer Price Index, pointed an increase by 0.2%. In annual terms, consumer inflation climbed to 1.4% in May in line with estimates and higher in comparison with the recorded 1.1% during the previous month. Core consumer price indicator remained stable at 1.7% in May, where it stood also in April. Data implied that consumer prices rose for the first time in three months in May. Inflation data is a crucial component to the economic situation in the country, in terms of FEDs easing program course, as it currently pours 85 billion USD into economy on a monthly basis. More significant asset purchases along with close to zero interest rates is a combination, which strives to stimulate economic growth and respectively, add new job positions.

Additionally, Housing Starts indicator in the United States increased in May by 6.8%, compared to April, supported by multifamily house construction. The indicator reached 0.914 million units, recording an annual increase by 28.6%. Multifamily house construction alone rose by 24.9%. On the other hand, single-family house construction registered a more moderate increase, by 0.3%. Preliminary estimates, regarding US Housing starts, showed a 11.4% increase to 0.950 million units, while Aprils data was revised up to 0.856 million.

Investors were looking ahead to the outcome of Federal Reserve Bank’s monthly meeting on Wednesday amid uncertainty over the bank’s next move.

Meanwhile, US dollar erased earlier losses against the euro, as EUR/USD slid by 0.10% to 1.3351 from a fresh session high at 1.3399. The greenback advanced to one-week highs against the British pound also, with GBP/USD pair decreasing by 0.92% to 1.5576.

Ultimately, the dollar index, which tracks the performance of the US dollar against a basket of six major currencies, rose by 0.40% to 81.16.

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

  • EUR/USD on seven-week highsEUR/USD on seven-week highs The euro was trading close to seven-week highs against the US dollar on Thursday, as uncertainty over the future of FEDs Quantitative Easing still pressured the greenback.EUR/USD reached its highest point for todays trade at 1.3352 at 5:43 […]
  • Repsol reports 62% YoY drop in Q2 adjusted earningsRepsol reports 62% YoY drop in Q2 adjusted earnings Spain's Repsol on Thursday reported a sharp decline in its second-quarter adjusted earnings mostly due to lower energy prices.The result, however, outstripped market expectations.The company's adjusted profit came in at EUR 827 […]
  • Gold futures extend decline as US rate hike remains on the tableGold futures extend decline as US rate hike remains on the table Gold extended the biggest drop in over a month on Wednesday as Asian shares swung despite Chinas latest monetary easing as investors remained cautious of a near-term US rate hike.Gold for delivery in December traded 0.16% lower at $1 136.5 […]
  • Revealed: The U.S. States With The Highest and Lowest Unemployment RatesRevealed: The U.S. States With The Highest and Lowest Unemployment Rates In March 2024, the U.S. economy added an estimated 303,000 jobs, above the average monthly gain of 231,000 over the prior 12 months. At the same time, the unemployment rate fell to 3.8% from 3.9% the month before, which is still a 0.3-point […]
  • Gold trading outlook: futures remain close to fresh 3-week highs, Fed’s rate outlook weighsGold trading outlook: futures remain close to fresh 3-week highs, Fed’s rate outlook weighs On Wednesday gold for delivery in August traded within the range of $1,247.30-$1,268.95. Futures closed at $1,267.55, surging 1.85% compared to Tuesday’s close. It has been the 48th gain in the past 91 trading days and also the steepest one […]
  • EUR/NOK edges lower ahead of ECB rate decisionEUR/NOK edges lower ahead of ECB rate decision The EUR/NOK currency pair was a notch weaker on Thursday following Norway's manufacturing data and ahead of the outcome of the ECB’s March policy meeting.Norwegian manufacturing production stalled in January compared to a month […]