After starting the day on a weak note (falling by -0.4% to around 1.0860/E at 3:30 p.m.), the dollar reversed course in the afternoon and rallied to around 1.0810/E (+0.1%).

The $-Index climbed from 104.65 to 105.05, also up +0.1%.... which was also seen against the yen and the pound (1.2700).

The greenback benefited from the rise in bond yields which began the previous day on T-Bonds (after the FED minutes), and accelerated after the publication of the May Composite PMI.

Growth in the US private sector accelerated sharply in May, by +3.1pts to 54.4 in flash estimates (vs. 52 expected), a 25-month high.

S&P Global points out that the "services" sector is driving this increase, posting its strongest output growth for a year, but that the manufacturing sector is also showing more vigorous growth.
On the downside, new home sales in the USA fell by 4.7% in April (down 7.7% on an annualized basis), according to statistics published by the Commerce Department on Thursday.
These came to 634.000 last month on a seasonally-adjusted annualized basis, compared with a revised 665,000 in March.
The median price of a new home reached $433,500 in April, compared with $439,500 the previous month, and the average was $505,700, down from $527,400 in March.
Lastly, the Labor Department announced a drop of -8,000 (to 215,000) in new US jobless claims.
The four-week moving average - more representative of the underlying trend - came in at 219,750, an anecdotal increase of 1,750 on the previous week.

The number of people receiving regular benefits rose by 8,000 to 1,794,000 in the week to April 29, the most recent period available for this statistic.

Copyright (c) 2024 CercleFinance.com. All rights reserved.