The main currency pair has been slowly growing for the third consecutive day, although there are fewer reasons for that than one would like to have.
The Eurodollar is getting more expensive on Tuesday evening. The current quote for the instrument is 1.1336.
Today, the USA published the statistics on the industrial production, which, in theory, had to support the greenback. In April, the industrial production increased by 0.7% taking into account the seasonal factor. On a year-on-year basis, the indicator reduced by 1.1%, which is better than the March number (-2%). The processing industry made its contribution to the indicator increase as it went up by 0.4%.
Utilization of production capacities in April continued to stabilize and was 75.4% against 74.9% in March. It’s better that predicted, but still not good enough to reach the numbers before the crisis.
The following detail is quite interesting in the report components: extraction industry production reduced by 2.3%, ore mining decreased by 13.4%. This could indicate gradual transition to other sources of energy or energy economy.
The published statistics is favorable for the US Dollar. However, the market has already given the cold shoulder to the idea if the interest rate increase in June – because there is nothing positive in it – and turned to speculative tools. The inflation in the USA, seasonally adjusted, increased in April by 0.4% against the predicted number of 0.3%. The building starts indicator in April was above expectations, 1.172 million against the expected number of 1.127 million.
As we can see, the Dollar is well supported by the stable statistics, and the market may get back to it.
RoboForex Analytical Department
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