Daily Morning Report 31.05.2017

The dollar edged higher against other major currencies on Wednesday, recovering from losses posted after the release of mixed U.S. economic reports on Tuesday.

EUR/USD eased 0.09% to 1.1176.

The dollar weakened after data on Tuesday showed that the CB consumer confidence index fell to 117.9 in April, compared to expectations for a rise to 119.8.

However, the U.S. Commerce Department said consumer spending rose 0.4% last month, in line with economists’ forecasts. It was the biggest increase in four months.

The greenback also remains under pressure amid fears investigations into President Donald Trump’s ties with Russia could hamper his administration’s progress on promised stimulus measures.

Elsewhere the GBP/USD slid 0.36% to trade at 1.2811 after a new poll showed that British Prime Minister Theresa May’s Conservative Party could lose 20 of the 330 seats it holds in Parliament while the opposition Labour Party could gain nearly 30 seats.

The news came after a string of opinion polls showed a narrowing lead for May’s Conservatives.

Meanwhile the yen added 0.14% to 110.99.

Sentiment mildly strengthened after data earlier showed that China’s official purchasing managers’ index remained unchanged at 51.2 in May, confounding expectations for a downtick to 51.0.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.12% at 97.34.