The US dollar continued to strengthen in yesterday's trading session in New York despite the United States (US) producer inflation data coming in with less declining readings.
The monthly reading of the producer price index (PPI) for May contracted 0.2%, lower than forecasts for a 1% increase.
In addition, the number of US jobless benefit claims for last week also recorded a higher increase of 242,000, the highest reading since August last year.
Although the latest data showed a risky reading following the drop in consumer inflation data on Wednesday, the US dollar remained strong with markets focusing on the US central bank's monetary policy sentiment.
The Federal Reserve (Fed) has kept interest rates unchanged at the latest FOMC meeting early Thursday morning yesterday and Chairman Jerome Powell also maintained a hawkish tone as before.
The projected one-time interest rate cut for this year gives the US dollar an advantage to continue to move strongly in the market.
The strengthening of the US dollar is seen to have erased the losses experienced when the reaction to the inflation data was published last Wednesday.
The US dollar is expected to continue its strengthening pattern for the close of trading this week but will react to data to be published in the New York session shortly.
The University of Michigan's survey of consumer sentiment and inflation expectations will maintain the strengthening of the US dollar if positive figures are reported.
Of course, other major currencies in the market are again pressured to fall with a situation that gives an advantage to the US dollar at the moment.
Gold trading has also fallen to the price target zone which is around $2,300 in the New York session yesterday before the price moved horizontally to continue the opening of the Asian session this Friday morning.
