The US Dollar (USD) had a tough time finding demand early Tuesday after weakening against major rivals on Monday. The Housing Price Index for March, Conference Board’s Consumer Confidence Index, and Dallas Fed Manufacturing Business Index for May were featured on the US economic calendar. Additionally, several Federal Reserve (Fed) policymakers were scheduled to deliver speeches during American trading hours. The USD Index edged lower in the second half of Monday, closing the day in negative territory. Following a three-day holiday, the benchmark 10-year US Treasury bond yield declined slightly early Tuesday while US stock index futures traded marginally higher on the day.
The table below shows the percentage change of the US Dollar (USD) against listed major currencies this week, with the US Dollar being the weakest against the New Zealand Dollar. The heat map displayed percentage changes of major currencies against each other, with the base currency picked from the left column and the quote currency picked from the top row. The data from Japan indicated that the Corporate Service Price Index rose 2.8% on a yearly basis in April, while Japan’s Weighted Median Inflation Index rose 1.1% in April. USD/JPY showed no reaction to these figures and was seen moving sideways slightly below 157.00.
EUR/USD stretched higher in American trading hours on Monday, holding its ground early Tuesday and trading above 1.0870. GBP/USD gained 0.25% on Monday and advanced toward 1.2800 early Tuesday, reaching its highest level in two months. Gold staged a rebound on Monday, rising nearly 1%, but XAU/USD struggled to preserve its recovery momentum, trading in the red below $2,350 early Tuesday. The Australian Bureau of Statistics reported that Retail Sales rose 0.1% on a monthly basis in April, below market expectations. AUD/USD entered a consolidation phase above 0.6650 on Tuesday.
The Consumer Confidence index, released monthly by the Conference Board, gauges sentiment among consumers in the US. It reflects prevailing business conditions and likely developments for the months ahead, detailing consumer attitudes, buying intentions, vacation plans, and expectations for inflation, the labor market, stock prices, and interest rates. The data gives insight into whether consumers are willing to spend money, a major driver of the US economy. Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish.
