What Happened To The King Of Currency At The Beginning Of The Week? - Kakiforex | Forex markets for the smart money. What Happened To The King Of Currency At The Beginning Of The Week? What Happened To The King Of Currency At The Beginning Of The Week?

May 17, 2021

What Happened To The King Of Currency At The Beginning Of The Week?

 Disappointing data readings on Friday seemed to still affect US dollar trading earlier in the week, which showed a slow movement during the Asian session.


After gaining support from a 10 -year surge in U.S. treasury yields following encouraging inflation data readings on Wednesday, the U.S. dollar rebounded after U.S. retail sales data were not as expected.


US retail sales showed no growth in April, down from 10.7% previously recorded. While core sales fell by 0.8% from a 9.0% increase in the previous month.



This led to market speculation for the Federal Reserve (Fed) to tighten its monetary policy amid rising inflationary pressures, easing.


In the Asian session, the dollar index, which measures the strength of the greenback against a basket of major currencies, traded around 90.35, while 10 -year US bond yields were stable at 1.62%.


Meanwhile, the Aussie and New Zealand dollars traded slightly lower ahead of the release of Chinese retail sales and industrial production data for April, both of which are expected to show slower growth than those recorded in March.


The pound remained stable above 1.4000 against the USD, as UK and Irish leaders sought to resolve the conflict over Northern Ireland. Brexit -related tensions are expected to continue to limit the movement of the pound sterling.