The US Dollar Index is currently in a consolidation phase after reaching a weekly high near 105.00. S&P Global will release preliminary May Manufacturing and Services PMI reports later in the day. Additionally, US economic data will feature weekly Initial Jobless Claims and April New Home Sales data.
The US Dollar has shown strength this week against major currencies. The US Dollar was the strongest against the Australian Dollar, as indicated in the percentage change table. The heat map also shows percentage changes of major currencies against each other, with the base currency on the left column and the quote currency on the top row.
The USD remained resilient against its rivals in the American session on Wednesday due to a negative shift in risk mood. The minutes of the Federal Reserve’s policy meeting revealed policymakers’ belief in easing price pressures. The benchmark 10-year US Treasury bond yield saw small gains and US stock index futures traded positively, reflecting an improvement in risk sentiment.
Data from Australia showed a decline in the Judo Bank Composite PMI, but AUD/USD showed no reaction to this report and traded higher. Retail Sales in New Zealand grew by 0.5% on a quarterly basis, higher than market expectations. NZD/USD edged higher after this report.
In Japan, the Jibun Bank Manufacturing PMI improved while the Services PMI retreated. USD/JPY lost momentum and declined following a rise on Wednesday. EUR/USD turned south and closed negatively, but remained above 1.0800. GBP/USD erased gains after climbing to a two-month high above 1.2750 on strong UK inflation data.
Gold faced heavy selling pressure, losing over 1.5% on Wednesday. XAU/USD continued to slide below $2,370 on Thursday. The S&P Global Composite PMI is a leading indicator of US private-business activity across manufacturing and services sectors, with a reading above 50 signaling expansion and below 50 indicating decline in activity. The latest release was 51.3, slightly above consensus.
