Improving Economy Pushes Dollar Down

The US dollar fell today against higher-yielding currencies, but rose against riskier ones, as the macroeconomic data improved outlook for growth of the US economy. The US data combined with the reports from China sapped attractiveness of safer currencies to Forex traders.
The Producer Price Index rose 0.2 percent in May after rising 0.8 percent in April. The expected growth was 0.1 percent. The retail sales fell 0.2 percent last month, less than the predicted 0.3 percent drop. The April growth of prices was revised to 0.3 percent from 0.5 percent. The tomorrow’s report about consumer prices may temper the optimism for the US economy as analysts say it’ll show that the inflation slowed.
The Standard & Poor’s 500 Index rose as much as 1.4 percent. The Thomson Reuters/Jefferies CRB Index of commodities gained 0.7 percent.
EUR/USD rose to 1.4450 from 1.4411 today as of 19:59 GMT after it climbed to the intraday high of 1.4497. NZD/USD advanced to 0.8177 from 0.8153. Meanwhile, USD/CHF jumped to 0.8452 from 0.8370.

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