US dollar consolidates as bulls take a breather
|- DXY trades flat in sleepy Asian trade and consolidates recent bullish phase.
- Fed officials are viewing a spike in inflation as transitory.
The US dollar is moving sideways into the closing sessions for Friday. DXY is trading at 90.73 at the time of writing in a tight 90.7200/8030 range.
There are prospects of a weekly gain, however, as traders price in a faster than expected rise of inflation in contrary to what the Federal Reserve bank might have expected.
This means that there are prospects that the Fed's hand could be forced to hike interest rates sooner.
Meanwhile, a strong reading on US wholesale prices and jobless claims on Thursday failed to spark a renewed uptick in Treasury yields, but it did support the greenback.
Americans filing new claims for unemployment benefits dropped to a 14-month low of 473,000.
There is a side of the market, however, that believes that the Federal Reserve will stay the course with the lower for longer script with officials viewing a spike in inflation as transitory.
In data overnight, the US Producer Price Index climbed 0.6% in April after surging 1.0% in March. In the 12 months through April, the PPI shot up 6.2% which was the highest year-on-year rise since the series was revamped in 2010 and followed a 4.2% jump in March, Reuters reported.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.