Dollar Recovers on Improved Data

19 May 2017 5:37:52 AM

By: DailyForex.com

The US Dollar edged higher on Friday, generally due to better than expected economic data from the US which helped to temper the latest sell off in the wake of the fallout from the Trump debacle. The latest economic news showed that jobless claims fell unexpectedly last week while the number of Americans receiving unemployment benefits hit a 28-year low. Moreover, according to the Philadelphia branch of the Federal Reserve, the Atlantic region’s manufacturing activity rose in May to 38.8, well above April’s reading of 22.0. 

As reported at 11:14 am (JST) in Tokyo, the EUR/USD was trading at $1.1104, up 0.03%. The GBP/USD pair was also higher at $1.2945, a gain of 0.05%. The USD/JPY was down at 111.159 Yen, down 0.38% while the USD/CHF was lower at 0.98003 Swiss Francs, down 0.011%.

Dollar Strength Pressured by Trump Fears

The US Dollar Index is also trading lower, and not unexpectedly, given the tumultuous scenarios occurring in Washington, DC and the latest news of a special investigator appointed to investigate Donald Trump’s alleged collusion with Russia. Investors are concerned that Trump’s plans for tax reform and higher infrastructural spending are likely to be sidelined while the investigation ensues. The USD Dollar Index, viewed as a measure of the greenback’s strength, was trading at 97.18 .DXY, down 0.08%, off Wednesday’s low of 97.333 .DXY.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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