Forex News: U.S. Dollar Higher On Trade Hopes

U.S. Dollar Higher On Trade Hopes

(RTTNews) - The U.S. dollar appreciated against its major counterparts in the New York session on Friday, as investors focused on developments on the trade front.

The Trump administration is planning to send letters to many countries in the coming weeks, which indicate tariff rates the U.S. intends to impose.

The U.S.-China trade deal to temporarily slash steep tariffs, as well as the recent bilateral trade agreement between the U.S. and the UK, helped ease trade tensions.

While U.S. consumer sentiment deteriorated in May, inflation expectations rose further.

Preliminary data from the University of Michigan showed that the consumer sentiment index dipped to 50.8 in May after slumping to 52.2 in April. Economists had expected the index to inch up to 53.4.

The report also said year-ahead inflation expectations surged to 7.3 percent in May from 6.5 percent in April.

Long-run inflation expectations also climbed to 4.6 percent in May from 4.4 percent in April.

The greenback climbed to 3-day highs of 1.1130 against the euro and 0.6387 against the aussie. The next possible resistance for the currency is seen around 1.10 against the euro and 0.62 against the aussie.

The greenback edged up to 146.09 against the yen, 1.3250 against the pound and 0.8401 against the franc, from an early 1-week low of 144.91 and 2-day lows of 1.3332 and 0.8327, respectively. The currency may find resistance around 148.00 against the yen, 1.31 against the pound and 0.86 against the franc.

The greenback rebounded to 1.3995 against the loonie and 0.5866 against the kiwi, from its early 2-day lows of 1.3935 and 0.5918, respectively. The greenback is poised to find resistance around 1.41 against the loonie and 0.57 against the kiwi.

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