Dollar Nudges Up Against The Yen With Producer Prices Awaited
The dollar nudged up against the yen in early Asia on Tuesday ahead of producer prices and with markets in the region noting the major Chinese New Year holidays start at the end of the week.
USD/JPY changed hands at 108.69, up 0.03%, while AUD/USD traded flat at 0.7861.EUR/USD traded up 0.03% to 1.2296 and GBP/USD gained 0.04% to 1.3845.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.23% to 90.01.
In Japan, producer prices are due for January with a 0.2% gain expected on month and a 2.7% rise on year.
Overnight, the dollar traded roughly unchanged against a basket of major currencies as investors mulled over Monday’s release of the Budget and Infrastructure Plan from the White House.
The infrastructure plan is widely believed to be dollar positive as it is seen as inflationary and expected to provide a fiscal lift to the US economy.
The infrastructure plan aims to spur $1.5 trillion in new investment by upgrading roads, airports and other public works. The plan also calls for $50 billion to be invested in broadband, roads, power, and water projects.
The plan, however, is expected to meet resistance from both sides of the Congressional aisle as Republicans are wary of another big spending measure– after a $300 billion budget deal was signed last week – while the Democrats claim the plan falls short of expectations concerning Federal funding.
The budget plan, meanwhile, forecasts the deficit for fiscal year 2019 to be $984 billion, an increase from the previously projected $526 billion.
The dollar, however, remained roughly unchanged as the pound and euro recovered from session lows