#dollar against euro today
Dollar falls against euro, rises against pound, yen
U.S. wages grow at a faster-than-expected clip in the first quarter, pushing the dollar higher against the pound and yen.
The dollar traded higher against some rivals, but extended its decline against the euro, after a spate of strong U.S. data supported the idea that the slump in first-quarter economic growth was transitory—increasing the likelihood that Federal Reserve policy makers might raise interest rates in June.
Economic data released Thursday showed Chicago-area manufacturing activity expanding for the first time in three months, weekly jobless claims falling to their lowest level in 15 years, and a larger-than-expected uptick in the employment cost index, a closely watched measure of wage inflation. The index climbed 0.7% in the first quarter, beating economists’ expectations of a 0.6% gain.
While these reports do not scream the need for an imminent rate hike, healthy labor data and the rebounds in wage growth and manufacturing activity should help restore demand for the dollar.
The dollar showed a notable lack of consistency in its trading Thursday, said Kathy Lien, managing director of FX strategy for BK Asset Management. It traded higher against the yen, pound, Canadian dollar CADUSD, +0.0134% and Australian dollar AUDUSD, -0.0659% while tumbling against the euro, Swiss franc USDCHF, -0.0705% and the New Zealand dollar NZDUSD, +0.3511% .
“The uneven price action tells us that yesterday’s Federal Reserve meeting had no lasting impact on market sentiment,” Lien said. However, the recent recovery in Treasury yields and the decline in U.S. stocks tell a different story, implied that the market is preparing for an earlier rate increase, Lien added.
The dollar USDJPY, -0.08% traded around ¥119.40 Thursday after rising to its highest level in a week. It traded around ¥119.05 late Wednesday in New York. The pound GBPUSD, +0.0164% weakened to $1.5357, compared with $1.5428 Wednesday.
The yen had strengthened against the dollar earlier in the global day after the Bank of Japan left monetary policy unchanged.
The euro EURUSD, +0.2569% traded at $1.1225, just below a session high that marked its highest level since late February. It traded at $1.1117 late Wednesday.
In an updated policy statement, released Wednesday, Fed policy makers implied that an interest-rate increase in June remained a possibility.
The WSJ Dollar Index BUXX, -0.12% a measure of the dollar’s strength against a basket of major currencies, was flat at 0.06%. The ICE U.S. Dollar Index DXY, -0.17% a measure of the dollar’s strength against a basket of six rivals, was down 0.5% to 94.7450.
Copyright 2016 MarketWatch, Inc. All rights reserved.
No results found
CAD/USD Tullett Prebon: CADUSD
Swiss Franc Tullett Prebon: USDCHF
Euro Tullett Prebon: EURUSD