Munich (GodmodeTrader.de) – The US dollar increased broadly at the end of the week (measured by the US dollar index) and is thus well on the way to posting a small profit on a weekly basis despite the four and a half month low reached this week.
On Thursday it was reported that the number of US initial jobless claims fell from 444,000 to 406,000 last week – a 14-month low. The US gross domestic product rose in the first quarter according to the second publication, as already reported, by 6.4 percent compared to the previous quarter (annualized), after plus 4.3 percent previously.
However, the president of the US Federal Reserve Bank (Fed) in Dallas, Robert Kaplan, warned that the job market was more tight than the employment figures suggested. Other Fed officials this week downplayed the effects of rising inflation and continued to promise ultra-loose monetary policy.
EUR / USD continues to consolidate its midweek losses after hitting a four and a half month high at 1.2266 in Friday morning European trading. The currency pair has been trading low today at 1.2170. The economic sentiment in the eurozone continued to improve in May. The indicator rose surprisingly from 110.5 points in April to its current 114.5 points – the highest value since January 2018. By consensus, analysts had expected an increase to just 112.1 points. The indicators improved particularly strongly in the sectors of service providers and retailers, which were hard hit by the Corona restrictions. As expected, consumer confidence in the eurozone rose to its highest level since October 2018 at minus 5.1 points in the reporting period. In April the value was minus 8.1 points. Please also read the current EUR / USD news.
While the GBP / USD is down to 1.4172 so far, the USD / JPY continued its recent rise towards the end of the week, hitting a seven-week high at 109.96. The unemployment rate in Japan rose surprisingly significantly in April to 2.8 percent. In consensus, analysts had only expected growth to 2.7 percent, after 2.6 percent in March. Consumer prices in Greater Tokyo fell in May as expected and, as in the previous month, also by 0.2 percent year-on-year. Please also note today’s USD / JPY news.
USD / CHF has so far been trading at a high of 0.8992. The KoF economic barometer for Switzerland determined by the economic research center at ETH Zurich surprisingly rose to a fresh record high of 143.2 points in May. In contrast, analysts had expected a decline to 136.0 points, after 136.4 points in April.
The data on US consumer spending (PCE) and the PCE deflator, an important indicator of inflation, are eagerly awaited on Friday afternoon. In addition, the Chicago Purchasing Managers’ Index and the final consumer climate of the University of Michigan are on the agenda in May. The details and other publications can be found in the economic data calendar.
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