- April 18, 2021
- Posted by: Trading
- Category: News
Investing.com – The dollar was flat against its rivals Thursday, shrugging off falling U.S. bond yields on upbeat economic data, though strength in the euro will put a nail in the greenback’s resilience, experts say.
The , which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.08% to 91.60, after hitting a low of 91.49.
The greenback has been moving in tandem with treasury yields, but though the 10-year Treasury fell sharply to its lowest level since Mar. 11, it didn’t trigger the slump that many would expect in the wake upbeat economic data suggesting the recovery is well on track.
“The combo of stimulus checks, good weather and the reopening propelled retail sales 9.8% m/m in March. This is second largest monthly gain on record, eclipsed only by last May’s 18.3% increase,” Jefferies (NYSE:) said.
The labor market backdrop, meanwhile, appears to be improving following last week’s better-than-expected nonfarm payrolls report.
U.S. jobless claims fell to 576,000 last week from 769,000 the prior week, a much larger decline the 700,000 expected.
A recovery in the euro has also weighed on the greenback – a trend which some expect to continue as Europe ramps-up its vaccination process.
“As vaccination in Europe is set to gain pace and eurozone activity is poised to level up with the US in the second half of the year, the less diverse and more synchronized recovery should weigh on the USD,” ING said in a ntoe.
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