After weeks of being mired down, the U.S. Dollar firmed and then steadied and the U.S. Dollar Index held close to an 8-week high against its peers following the release of new, unexpectedly improved economic data which lifted sentiment for the greenback. Key pieces of data included Markit’s PMI Services reading which rose to 58.4 against expectations of 55.6, the consumer confidence reading that met expectations at 83 in May and rose from April’s 81.7 reading and durable goods orders handily beat analysts’ expectations in April.
As reported at 12:06 p.m. (JST) in Tokyo, the U.S. Dollar Index edged up to 80.340 .DXY, remaining close to the peak of 80.470 .DXY set yesterday, a high last seen in April. The USD/JPY also steadied at 101.94 Yen, just off yesterday’s peak of 102.14 Yen. The EUR/USD, meanwhile, had struck a 3-month trough on Tuesday when the pair hit $1.3612, but has since edged higher to $1.3636.
Draghi Drops More Hints
The Euro is continuing to be under some pressure as a result of commentary made by officials of the European Central Bank. Yesterday, Mario Draghi, the head of the ECB, discussed the Eurozone’s low inflation as something that ECB members were uncomfortable with, hinting once again that a policy shift might be in order at the upcoming monetary policy meeting.