Dollar Index Holds Firmly Above 105 Mark Ahead Of Critical US Data

The US dollar is standing tall, backing by climbing US treasury yields awaiting US inflation and FOMC outcome after last weeks stronger-than-expected US monthly jobs report scaled back expectations for a Federal Reserve rate cut. Data on Friday showed that the US economy added 272,000 jobs in May, significantly higher than the revised 165,000 in April and well above the expected 185,000. Elevated US treasury yields at 4.45% are holding the dollar index higher at 105.09. Yesterday dollar also surged to a one-month high against the euro as far-right parties gained ground in the European Parliament elections, raising political uncertainty in the region. Investors are keeping their focus mostly on the Consumer Price Index (CPI) for May and the Federal Reserve (Fed) meeting, both on Wednesday for further cues on Federal interest rate stance. Among the basket currencies, EURUSD and GBPUSD are quoting at $1.0772 and $1.2736 respectively.

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