Dollar Rises Against Euro, Pound as Traders Eye Major US Data
The US dollar rose against its major trading partners early Tuesday ahead of a busy day of economic data releases, starting with weekly Redbook same-store sales.
Factory orders and job openings data for April are due, followed by consumer sentiment data for June. Chicago Federal Reserve President Austan Goolsbee is due to speak, followed by Fed Governor Lisa Cook and Dallas Fed President Lorie Logan.
ISM manufacturing, jobless claims, and Friday’s big-ticket item: non-farm payrolls. All could send the dollar flying or flailing. A quick summary of foreign exchange activity heading into Tuesday showed that USDEUR fell to 1.1403 from 1.1445 at the Monday US close and 1.1419 at the same time Monday morning.
Eurozone consumer prices were flat in May, slowing the year-over-year growth rate, while the unemployment rate declined modestly in April, according to data released earlier Tuesday.
European Central Bank President Christine Lagarde is due to speak at 12:00 pm ET. The next European Central Bank meeting is scheduled for Thursday, when a 25-basis point rate reduction is expected.
GBPUSD fell to 1.3510 from 1.3547 at the Monday US close and 1.3536 at the same time Monday morning. There are no UK data on Tuesday’s schedule. The next Bank of England meeting is scheduled for June 19.
USDJPY rose to 143.0657 from 142.6914 at the Monday US close and 142.8175 at the same time Monday morning. There were no Japanese data released overnight.
Bank of Japan Governor Kazuo Ueda said that the BOJ will not move rates higher until economic conditions allow for it and is not planning to increase rates just to allow room for future rate reductions. The next Bank of Japan meeting is scheduled for June 16-17.
USDCAD rose to 1.3735 from 1.3703 at the Monday US close and 1.3696 at the same time Monday morning. There are no Canadian data on Tuesday’s schedule. The next Bank of Canada meeting is scheduled for Wednesday, when no change in policy is expected. Benchmark Yield on Nigeria’s Bonds Falls in Post-Auction Rally
