🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Forex - Dollar Off Lows, Euro Loses Momentum as Spanish PM's Future in Doubt

Published 2018-05-31, 01:00 p/m
© Reuters.
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CAD
-
DX
-

Investing.com – The U.S. dollar rebounded from session lows following mostly positive data and a retreat in the euro despite reports Italy’s populist parties were nearing an agreement to form a government as they sought to avert fresh elections.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.02% to 94.08, after falling to session low of 93.69.

The Federal Reserve's preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, rose 1.8% in the 12 months through April, in line with economists’ forecast, while the PCE price index rose 0.2% month-on-month topping expectations.

The U.S. Department of Labor reported Thursday that initial jobless claims dropped by 13,000 to a seasonally adjusted 221,000 for the week ended May 26, beating economists’ forecast for 234,000 new filers.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.6% last month, the Commerce Department said on Thursday.

"Strong spending will support GDP growth in excess of 3.0% in the second quarter, although the inflation data suggest that the Fed doesn't need to up the pace of rate hikes," CIBC said.

The positive data helped the greenback move off its lows as it came under pressure earlier in the session following a rise in the euro as Italian parties sought to resolve their differences to avoid snap elections.

EUR/USD rose 0.15% to $1.1681 but remained well below its session high of $1.1724 as traders braced for the result of a vote of no confidence due Friday that could toppled Spanish Prime Minister Mariano Rajoy.

GBP/USD rose 0.03% to $1.3249, while USD/CAD rose 0.70% to C$1.2963 as the latter pair was supported by falling oil prices.

USD/JPY fell 0.13%.

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.