Dollar Ends Week with Gains

The US dollar ended the week with gains as positive macroeconomic data supported expectations of an end to Federal Reserve’s quantitative easing. The gains were limited and the greenback fell versus the Japanese yen, though, as not all reports were good.
The Michigan Sentiment Index rose from 76.4 in April to 84.5 in May, more than was expected. The Chicago Purchasing Managers’ Index jumped from 49.0 in April to 58.7 in May. Meanwhile, personal expenditures declined 0.2 percent last month.
It is interesting times as good news considered to be a bad thing, suggesting that the Fed will remove stimulus, while bad news are received as a good thing, meaning that QE will persist. The dollar’s behavior was a bit erratic on Friday as there were both bad and good news.
EUR/USD was down from 1.3048 to close at 1.2994, while the daily low was at 1.2943. GBP/USD dropped from 1.5229 to 1.5191 and its intraday low was at 1.5138. USD/JPY went down from 100.71 to 100.43.

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