The dollar is inching higher -- here's what's happening in FX

Good morning!

It’s a pretty quiet morning as of 7:36 a.m. ET.

Here’s the scoreboard:

  • The US dollar index is stronger by 0.2% at 94.31 ahead of a relatively busy data day. First up, PPI and retail sales at 8:30 a.m. ET. “We note again that the dollar bounce is not being led by a change in Fed tightening expectations,” Marc Chandler, the global head of currency strategy at Brown Brothers Harrisman, wrote in a note to clients.
  • The euro is down 0.2% after Eurozone GDP missed. The region’s economy grew 0.5% in the first quarter, missing economists’ expectations of 0.6% growth. Notably, Germany’s GDP grew by 0.7% in the same time frame, above expectations of 0.6% growth.
  • The South Korean won ended the day weaker by 0.8% at 1171.41 per dollar after the Bank of Korea held its key interest rate at 1.50%, as expected. The BoK noted that exports continue to slow and that employment growth also appears to be slowing. Looking ahead, the central bank forecasts “consumer price inflation will continue at a low level, under the influence of the low oil prices for example.”
  • The Japanese yen is stronger by 0.2% at 108.88 per dollar, although it was one of the biggest losers among major currencies this week. And, once again, Bank of Japan Governor Haruhiko Kuroda noted there’s still room to ease policy further.

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