Us Dollar Starts On A Strong Note

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Us Dollar Starts On A Strong Note

Us Dollar Starts New Week On A Strong Note

It is the first day of a new trading week, and the USD remains strong against all major currencies. In fact, the DXY is sitting comfortably at 105.50 and is holding onto its modest gains.

As there will be no major economic release in the next few days, the focus of the investors will be solely on the comments from the US Fed and other central banks.

Us Stock Yields Remain Supported

If we look back, the US inflation data made it difficult for the USD to find sufficient demand. But the hawkish tone from the Fed changed all of that and allowed the USD to shine once again.

During the early Monday session, no change was seen in the US stock index futures, while the 10-year yields remained strong above 4.2%.

little earlier, data from China was released, showing a 3.7% expansion in retail sales in May. This reading showed the retail sales have actually jumped from the 2.3% in April and even surpassed the market forecasts.

Conversely, the industrial production of China showed a growth of 5.6% during the same period of time. This was a little lower than the forecast of 6% set by the market experts.

Elsewhere, the data from Australia showed that ANZ Job advertisement has gone down by 1.1% on a m/m basis. The AUD/USD has already crossed the last few days in red which is a sign of the USD strength.

Similarly, the EUR/USD has been down by 1% in the last week alone due to the broader strength of the USD. The pair appears to be struggling to turn around amid a stronger USD and political turmoil in France.

GBP/USD is also under the influence of bearish momentum and is seen trading below the resistance at the 1.2700 handle. This marks the 2nd week of the GBP weakness against its American counterpart.

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