Analysts say the greenback is headed to record a weekly loss despite the markets' dismissal of the Federal Reserve's recent comments on tapering. Earlier in the week, the latest Fed minutes showed that some members of the Federal Open Market Committee believe that the asset purchase pace might need to be adjusted if the US economy continues to show improvement. Outside of the US, other currencies continue to gain positive momentum as their respective nations recover from the economic repercussions of the Covid-19 pandemic.
In Tokyo trading as of 10:47 am, the EUR/USD was trading higher at $1.2232, a gain of 0.0376%; the pair has ranged from a low of $1.22168 to a peak of $1.223978. The GBP/USD was lower at $1.418, down 0.0656%, off the session peak of $1.41975. The USD/JPY was higher at 108.8360 Yen, up 0.07%; in today's session, the pair has ranged from 108.728 Yen at the low end to 108.904 Yen at the high end.
EU PMI Reports in Focus
Later today, markets will be watching for the release of PMI reports in the Eurozone. Chief among them is the PMI report for the EU's largest economy, Germany. Analysts recently polled have predicted that the preliminary reading for the May Manufacturing Sector PMI will come in at 65.9, down from 66.2. The PMI for the Services Sector is expected to show an improvement at 52, above the 49.9 of the previous reading. Finally, analysts expect the Composite PMI to rise to 57.1, an improvement of last month's 55.8.