Dollar Mostly Subdued Against Rivals

May 30, 2020

The U.S. dollar recovered after exhibiting weakness in the Asian session, and was down marginally around late afternoon, after briefly moving above the flat line past noon.

The currency was reacting to a slew of economic data from across the globe. Traders were also reacting to updates on the coronavirus pandemic. Rising U.S.-China tensions on Beijing’s decision to impose a new security legislation on Hong Hong and the Trump administration’s warning to China also had an impact on dollar’s movements.

The dollar index, which dropped to a low of 97.95 in the Asian session, rose to 98.55 and was last seen at 98.30, down marginally from previous close.

Against the Euro, the dollar was weaker at $1.1109, losing ground from $1.1077. Data from Eurostat showed eurozone inflation dropped to a four-year low of just 0.1% in May, the official Eurostat agency said.

The Pound Sterling firmed up to $1.2394, but gave up gains, easing to $1.2353, but was still up notably by over 25% from previous close, by late afternoon.

Against the Japanese currency, the dollar was fetching 107.78 yen, compared with 107.64 yen a dollar late Thursday.

The dollar was trading at $0.6668 against the Aussie, nearly 0.5% down from previous close.

The Swiss franc firmed up to CHF 0.9612 from CHF 0.9642, while the Loonie was down marginally at C$1.3775 a U.S. dollar.

In economic news, revised data released by the University of Michigan showed the consumer sentiment index for May was downwardly revised to 72.3 from the preliminary reading of 73.7. Economists had expected the index to be upwardly revised to 74.0.

A report released by MNI Indicators showed its Chicago business barometer dropped to 32.3 in May from 35.4 in April. Economists had expected the barometer to rise to 40.0. With the unexpected decrease, the Chicago business barometer dropped to its lowest level since March of 1982.

Meanwhile, the Commerce Department’s report showed an unexpected substantial increase in U.S. personal income in the month of April. The report said personal income spiked by 10.5% in April after tumbling by a revised 2.2% in March. Economists had expected income to plunge by 6.5% compared to the 2% slump originally reported for the previous month.

The material has been provided by InstaForex Company – .

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