Though the dismal data from the US continues to pour in the US Dollar was able to regain some of last week’s losses even as investors weigh the likelihood that the Federal Reserve Bank will now not be making any policy change in the coming months. The latest economic news was a fall in US industrial production which declined in April for the fifth consecutive month and more importantly, a disappointing reading of May’s consumer confidence levels which could hint at a possible decline in GDP given the relevance of the consumer to economic growth.
As reported at 9:03 am (BDT) in London, the EUR/USD was trading at a session low of $1.1365, down nearly 0.6% and off last Friday’s high of $1.1468; the pair was more recently trading at $1.1400. The USD/JPY was up at 119.6495 Yen, a gain of 0.25%. The US Dollar Index was higher at 93.5720 .DXY, up 0.47%.
Focus on Upcoming Data
Analysts point out that a rise in bond yields for US Treasuries helped to put an end to last Friday’s correction of the EUR/USD but that investors remain wary of Dollar longs given the past economic data. The focus will be on the upcoming release of consumer inflation data, with another disappointing likely weighing on the greenback.