Cautiously, Investors Push Dollar Higher
The US Dollar Index was higher after FX traders consolidated their positions with currencies that are low yielding, albeit safe havens, like the Japanese Yen and Swiss Franc. Analysts say that market players are looking for some direction because the geopolitical concerns over a possible nuclear strike on Guam by North Korea are playing out in investors’ minds. The US Dollar Index, used to assess the greenback’s weight relative to a basket of major peers, was up 0.2%; last week, it had struck a 15-month trough.
As reported at 11:23 am (BST) in London, the EUR/USD was trading at $1.171, down 0.43%; the pair has ranged from a session low of $1.17034 to a peak of $1.17712. The GBP/USD is also lower at $1.30, down 0.03% and off the session low of $1.29502 while the peak for the trading day is set at $1.30165. The USD/CAD is up 0.2473% to trade at C$1.2728, not far from the session peak of C$1.27358.
US Data Eyed Today
While the unfolding geopolitical drama will be foremost in investors’ minds, key economic data is due out today from the US. Producer price inflation reports will be released today and consumer price inflation data will come out tomorrow. Today’s reports will be released just prior to a speech from one of the Federal Reserve governors, William Dudley of the New York branch, who could offer clues on the FOMC’s outlook for a rate increase this year, given the most recent labor and inflation data.