The US Dollar was higher versus the Japanese Yen as investors’ hope for a June rate hike was revived by the federal Reserve statement released yesterday. The Fed statement downplayed possible threats to its intentions for a rate increase next month, increasing expectations for additional rate adjustments later in the year. In the Eurozone, with a presidential run-off looming, the Euro gained support after Emmanuel Macron’s televised debate seemed to show him as a clear front runner.
As reported at 11:20 am (BST) in London, the USD/JPY was trading higher at 112.9900 Yen, a gain of 0.31%, rising from its earlier session peak of 112.92 Yen. The EUR/USD was higher at $1.0934, a gain of 0.46%. The GBP/USD was trading at $1.2891, a gain of 0.18%.
Commodities Drop Puts Aussie/Kiwi Under Pressure
A rise in yields on US Treasury instruments, specifically 10-year bonds, helped push the Dollar higher against both the Aussie and Kiwi Dollars. The Australian and New Zealand Dollars tend to mirror the outlook for the Chinese economy. The latest data, with a sharp decline in iron ore prices as well as other commodities, suggested that investors are concerned about economic growth in China. That pushed the Aussie and Kiwi lower; the AUD/USD was trading at $0.7416, down 0.10% while the NZD/USD was at $0.6879, down 0.1169%.