“It just seems like another piece of data that shows what the Federal Reserve has been preaching: the economy is resilient enough to accept more interest rate hikes,” said Juan Perez, director of operations at Monex USA in Washington.
Fed funds futures see just two more quarter-point rate hikes from the Fed to a high of around 5% in June, before it starts cutting rates later in the year. The Fed itself has insisted that it still expects about 75 basis points more in rate hikes,” he explained.
The dollar index, which rose briefly against the euro after the US data, took a loss late in the day, hovering near the 9-month lows hit in the previous session.
The euro added 0.09% to $1.0881, just shy of the 9-month high of $1.0927 hit on Monday. The European currency was supported by PMI survey data that supported views that the economy was weathering a winter of intense price pressure reasonably well, analysts said.
Meanwhile, the dollar rose to a nearly a week high against the yen before giving back those gains to trade down 0.44% at 130.095 yen.
Last week, the dollar fell to a low of 127.215 yen, its lowest level since May, before the Bank of Japan’s monetary policy statement. in which investors bet that the central bank could signal the end of its stimulus program. The BoJ, however, left its policy unchanged, giving the dollar a breather.
Source: Ambito
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