US dollar gains amidst underwhelming data
The US dollar edged higher in early trading in Europe on May 21. Traders took into account the pessimistic statements of the Federal Reserve and the underwhelming data from Asia.
By 06:45 GMT the US Dollar Index gained 0.3% and reached 99.403. EUR/USD lost 0.1% and stood at 1.0962. USD/JPY gained 0.2% and reached 107.76.
A South Korean trade report published earlier today, demonstrated that exports might be headed for a 205 drop this month. Japanese overseas trade shipments lost 20% last month. The manufacturing activity in the country continues to grow weaker.
The negative outlook has been reinforced by the Federal Reserve, whose members claimed that the pandemic will be a heavy weight on economic growth in the near term. Risks of new downturns will also be present in the medium term.
Traders are waiting for the new weekly US jobless claims data, scheduled to be published at 12:30 GMT. The new initial claims are expected to total at about 2.4 million - last week there were 3 million.