🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Dollar pushes higher as focus turns to Fed meeting

Published 05/18/2015, 10:50 AM
© Reuters.  Dollar extends gains against counterparts ahead of Fed meeting
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
USD/CAD
-
NZD/USD
-
DX
-

Investing.com - The dollar pushed higher against a basket of other major currencies in subdued trade on Monday, as the greenback continued to recover from the previous week's sharp losses and investors turned their attention to the Federal Reserve's upcoming policy meeting.

The dollar rebounded as investors turned their attention to Friday’s U.S. inflation data and Wednesday’s minutes of the Fed's April meeting for fresh indications on the timing of an initial rate hike.

The greenback had weakened after data on Friday showed that U.S. industrial production fell for the fifth straight month in April and another report showed that U.S. consumer sentiment deteriorated to a seven month low this month.

The reports came after disappointing data on retail sales and producer inflation earlier in the week and dampened hopes for a second quarter rebound after a sharp slowdown in growth in the first three months of the year.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.75% to 94.00.

EUR/USD declined 0.92% to 1.1342, pulling away from Friday's three-month highs of 1.1467 amid fresh concerns over the prospects of a Greek default.

Athens is scrambling to reach a cash-for-reform deal with its international lenders in time to avoid a cash crunch.

Over the weekend, a leaked memo from the International Monetary Fund showed that there is "no possibility" that Athens can meet a loan repayment due on June 5 without a deal to unlock outstanding bailout funds.

Last week Greece came close to defaulting on a €750 million IMF repayment, which it ultimately made by tapping emergency reserves in its holding account at the IMF.

The pound was also lower, with GBP/USD down 0.44% to 1.5658.

Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.45% to 119.76 and with USD/CHF gaining 0.70% to 0.9223.

Data earlier showed that Japan's core machinery orders rose 2.9% in March, the first increase in two months. However the report also indicated that core orders will fall in the current quarter, adding to concerns over the outlook for the recovery.

In Switzerland, data showed that retail sales declined at an annualized rate of 2.8% in March, compared to expectations for a 2.0% fall. February's figure was revised to a 3.1% drop from a previously estimated 2.7% slide.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.52% to 0.7996 and NZD/USD tumbling 1.09% to 0.7392.

The Australian Bureau of Statistics reported on Monday that new motor vehicle sales fell 1.5% last month, after a 0.5% rise in March.

Meanwhile, USD/CAD advanced 0.97% to trade at 1.2129.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.