Kantox currency update: dollar bounces up on upbeat U.S. data
The dollar picked up in a somewhat calmer market session on Thursday, to put an end to four consecutive days of decline, buoyed by better than expected U.S. weekly unemployment claims and an upbeat manufacturing activity index, which have eased concerns about the turmoil in the Government, and increased confidence in the health of the U.S. economy.
EUR/USD pulls back to levels sub 1.1100. The euro halted its four-day rally from 1.0840 at 6-month high 1.1170 and retreated on Thursday to hit intra-day lows at 1.1075. At London market opening times, the EUR/USD is trading at 1.1125.
GBP/USD: unable to consolidate above 1.3000. The sterling advanced on Thursday, buoyed by better than expected UK retail sales figures and pierced the 1.3000 level for the first time in almost eight months although it retreated quickly, returning to the lower range of 1.2900. At London market opening times, the GBP/USD is trading at 1.2950.
USD/JPY: bounces up from 110.25 lows. Dollar decline from last week highs above 114.00 extended on Thursday to three-week lows at 110.25, where the pair found support to bounce up, aided by the positive U.S. macroeconomic figures, to return above 111.00. At London market opening times, the USD/JPY is trading at 111.20.
In the Calendar Today
Today we will have second-tier macroeconomic events. In the UK the CBI industrial trends survey, which is expected to have remained steady, and in the Eurozone the preliminary consumer confidence Index.
10:00 GMT UK: CBI Industrial Trends survey – Orders (MoM) (May)
Prev: 4 Cons: 4
14:00 GMT EZ: Consumer Confidence – Preliminary
Prev: -3.6 Cons: -3.0