Dollar Rises Ahead of Federal Open Market Committee Minutes
The US dollar rose against its major trading partners Tuesday after the long holiday weekend, with the focus this week on consumer confidence, minutes of the May 6-7 Federal Open Market Committee (FOMC) meeting, and the second look at Q1 GDP and personal income, spending, and price data for April.
Attention remains on the debate in the U.S. Senate on President Donald Trump’s tax-cut bill that is expected to add to the debt pile in the world’s largest economy. Markets have been sensitive to Trump’s plan, particularly after Moody’s downgrade of the U.S. sovereign credit rating on May 16.
The U.S. House of Representatives last week passed a version of Trump’s tax-cut bill that is calculated to add about $3.8 trillion to the federal government’s $36.2 trillion in debt over the next decade, according to the Congressional Budget Office. Trump said on Sunday that the bill was likely to see “significant” changes as it is debated in the Senate.
A quick summary of foreign exchange activity heading into Tuesday showed that USDEUR fell to 1.1345 from 1.1386 at the Monday close and 1.1384 at the same time Monday morning.
Eurozone consumer confidence improved modestly in May but still indicated more pessimism than optimism, according to data released overnight. The next European Central Bank meeting is scheduled for June 4-5. GBPUSD fell to 1.3549 from 1.3564 at the Monday close and 1.3565 at the same time Monday morning.
UK car registrations fell sharply in April while UK retail and wholesale conditions turned sharply negative in May, according to data released earlier Tuesday. The next Bank of England meeting is scheduled for June 19.
USDJPY rose to 144.0512 from 142.7709 at the Monday close and 142.8990 at the same time Monday morning. Japanese corporate services price growth slowed in April, according to data released overnight. The next Bank of Japan meeting is scheduled for June 16-17.
USDCAD rose to 1.3764 from 1.3737 at the Monday close and 1.3715 at the same time Monday morning. Canadian wholesale sales data for April are due to be released. The next Bank of Canada meeting is scheduled for June 4. #Dollar Rises Ahead of Federal Open Market Committee Minutes IMF Cuts Global Economic Growth Forecast to 2.8%
