Dollar Extends Weekly Gain With Focus on US Data
The dollar rose versus all Group-of-10 peers except the yen amid uncertainty about US tariffs and ahead of key US data releases.
The Bloomberg Dollar Spot Index rises 0.2% as it heads for its best week since February; still, it’s down by 0.5% in May and is set for its longest losing monthly streak in nearly five years.
The Treasury 10-year yield climbs 1bp to 4.43%.
Focus turns to data due later Friday including PCE inflation and personal spending; a proposed tax measure in a US tax-and-spending bill that could raise rates on individuals and companies from countries deemed to have “discriminatory” tax policies is also seen as a dollar headwind.
The yen outperforms its G-10 peers as faster-than-expected inflation in Tokyo supported the case for a Bank of Japan interest-rate hike.
USD/JPY drops 0.1% to 144.11, versus 143.44 day low as month-end flows also make the rounds; the pair heads for 0.7% monthly advance for the first time this year.
Data showed consumer prices excluding fresh food in Japan’s capital rose 3.6% y/y, exceeding the 3.5% increase estimated by economists.
EUR/USD slips 0.4% to 1.1328, flat on a monthly basis; the euro is up a fifth month for the first time since 2017.
CPI data from individual German states suggest a further decline in headline HICP inflation in May to 2.0%, from 2.2% in April, according to Bloomberg Economics.
EUR/GBP down 0.1% to 0.8412.
AUD/USD drops as much as 0.5% to 0.6408 before paring losses; an unexpected decline in Australian retail sales last month added to speculation the Reserve Bank may cut rates.
Source: Bloomberg
