Daily Afternoon Report 20.05.2016

The dollar was little changed at seven-week highs against the other major currencies in quiet trade on Friday, as expectations for a U.S. rate hike in June continued to support the greenback and as investors awaited the release of U.S. existing home sales data later in the day.

USD/JPY rose 0.35% to 110.35, just below the previous session’s three-and-a-half week high of 110.37.

The dollar remained broadly supported after the Federal Reserve’s April meeting minutes on Wednesday showed that officials said a June rate hike would be appropriate if economic data indicated that growth was picking up in the second quarter and employment and inflation were firming.

In addition, New York Federal Reserve President William Dudley said on Thursday that the U.S. economy could be strong enough to warrant a rate hike in June or July.

EUR/USD edged up 0.17% to 1.1221, but remained close to Thursday’s seven-week low of 1.1180.

The dollar was higher against the pound, with GBP/USD down 0.28% at 1.4569 and was steady against the Swiss franc, with USD/CHF at 0.9913.

The Australian dollar was little changed, with AUD/USD at 0.7229, while NZD/USD gained 0.37% to 0.6768.

Elsewhere, USD/CAD edged up 0.11% to 1.3108, near the previous session’s six-week highs of 1.3155, as investors awaited a string of economic reports out of Canada.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 95.28, just off Thursday’s seven-week peak of 95.51.