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Forex - EUR/USD Surge Pressures Dollar to Turn Negative

Published 06/05/2018, 01:12 PM
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Investing.com – The U.S. dollar turned negative against its rivals Tuesday as an earlier rally on better-than-expected U.S. economic data was offset by a late surge in euro.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.17% to 93.86.

ISM non-manufacturing data for May showed an uptick to 58.6, beating expectations for 57.9.

US job openings rose to 6.7 million in April, exceeding the number of unemployed, 6.3 million in the month, and topped economists' expectations of 6.490m.

A late-surge in the EUR/USD to $1.1721, up 0.19%, forced the greenback to pare gains. The move higher in the euro came as Italian Prime Minister Conte insisted that the country's exit from the Eurozone had never been discussed.

The single currency was also bolster by reports that European Central Bank policy makers could announced at the conclusion of their meeting next week when they intend to stop asset purchases.

GBP/USD rose 0.55% as the UK's crucial services sector topped expectations.

USD/CAD rose 0.43% to C$1.2989, amid concerns over the progress of North American Free Trade Agreement (NAFTA) talks as President Trump reportedly wants separate talks with Mexico and Canada.

USD/JPY fell 0.20% to Y109.60.

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