The U.S. dollar snapped back from its early losses against the other major currencies in European deals on Friday, as traders await reports on industrial production and consumer sentiment index, due later in the day, to gauge whether the economy has recovered growth momentum.
The Federal Reserve is due to release its industrial production report for April at 9:15 am ET. The industrial production is seen flat on month, while manufacturing production is forecast to rise to 0.2 percent.
The Reuters/University of Michigan’s preliminary consumer sentiment index is seen at 95.9 in May, unchanged from last month.
With the Federal Reserve continuing to indicate that its rate hike is determined by economic data, investors are pricing the first increase to come sometime in the second half of this year.
The economic data was mixed on Thursday. While U.S. producer price inflation was softer-than-expected in April, weekly jobless claims fell, proving an uneven recovery.
The dollar was a clear under-performer on yesterday also. It fell 0.20 percent against the pound, 0.48 percent against the euro, 0.02 percent against the yen and 0.49 percent against the franc for the day.
The greenback, which ended yesterday’s deals at 119.11 against the yen, rose to a 2-day high of 119.71. Next possible resistance for the greenback-yen pair may be located around the 120.00 mark.
The greenback firmed to a 2-day high of 0.9185 against the Swiss franc, reversing from its previous low of 0.9114. At yesterday’s close, the pair was valued at 0.9120. If the greenback continues rise, it may test resistance around the 0.93 area.
Reversing from its prior lows of 1.5783 against the pound and 1.1420 against the euro, the greenback edged up to 1.5727 and 1.1345, respectively. The greenback is seen finding resistance around 1.55 against the pound and 1.10 against the euro. The greenback was trading at 1.5774 against the pound and 1.1408 against the euro at Thursday’s close.
The greenback advanced to a 2-day high of 1.2016 against the loonie, compared to yesterday’s closing quote of 1.1981. If the greenback extends rise, it may face resistance around the 1.21 mark.
Extending early gains, the greenback hit 2-day highs of 0.8013 against the aussie and 0.7440 against the kiwi. This may be compared to Thursday’s closing quotes of 0.8075 against the aussie and 0.7495 versus the kiwi. On the upside, the greenback is likely to find resistance around 0.79 against the aussie and 0.735 against the kiwi.
Looking ahead, Canada existing home sales data for April, New York Fed’s empire manufacturing survey for May, U.S. industrial output data for April and Reuters/University of Michigan’s preliminary consumer sentiment index for May are set to be published in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com