Finance News
By Steven Anderson
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Consumer Spending and Manufacturing Beat. The data side of the story is pretty straightforward. U.S. consumer spending climbed 0.4% in May.
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Euro Slips, Yen Keeps Weakening. On the other side of the trade, the euro dropped to $1.086.
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What Traders Are Watching Next. The next big data point is the non-farm payrolls report.
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The dollar is up. Not dramatically, but enough to matter — the dollar index edged higher Tuesday as a mix of solid economic data and hawkish commentary from a former Federal…
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Kevin Warsh, who served as a Federal Reserve governor, said the central bank needs to stay vigilant against inflationary pressures.
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The data side of the story is pretty straightforward. U.S. consumer spending climbed 0.4% in May. The Institute for Supply Management's manufacturing index came in at 52.
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That's the kind of print that makes the Fed's job harder, in a sense. Strong consumer spending keeps inflationary pressure alive. A manufacturing index above 50 means expansion.
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The dollar tends to do well in that environment. Higher rates mean higher yields on U.S. assets, which draws capital in, which bids up the currency.
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On the other side of the trade, the euro dropped to $1.086. The Eurozone's been sending mixed signals — some data decent, some not — and that ambiguity is tough to trade around.
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The yen is a different story, and a harder one. It weakened to 144.1 per dollar. Japan's monetary policy stance has stayed divergent from the Fed's for a while now, and that gap…
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See also: Capital Economics Sees Euro Sliding to $1.10 as Fed-ECB Policy Gap Widens
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Currency traders are watching both situations closely. The euro move feels like a reaction to the dollar's strength more than anything specific out of the Eurozone.
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The next big data point is the non-farm payrolls report. Jobs numbers can shift the whole narrative fast. A strong print would probably cement expectations for another hike.
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Beyond payrolls, the Fed's meeting minutes are coming. Those tend to be parsed carefully for any language shifts — any hint that the committee is more divided than it sounds, or…
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Warsh's comments fit into a broader pattern of Fed-adjacent voices reinforcing the tightening message. It's not just the voting members anymore.
The Currency Analytics
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