The United States dollar advanced against a basket of major currencies on Tuesday, gaining strength following the Memorial Day weekend. Market watchers are closely monitoring upcoming economic data and Federal Reserve communications for signs of monetary policy direction.
This week’s key highlights include consumer sentiment data, the Federal Open Market Committee (FOMC) meeting minutes from May 6–7, and updated figures on first-quarter GDP, along with April’s personal income, consumer spending, and inflation metrics.
Investor sentiment remains heavily influenced by the ongoing U.S. Senate deliberations over President Donald Trump’s proposed tax overhaul, which analysts warn could significantly increase national debt. The U.S. House of Representatives recently passed a version of the bill, which the Congressional Budget Office estimates could expand federal debt by approximately $3.8 trillion over the next ten years, adding to the current $36.2 trillion total.
Trump, in a statement on Sunday, hinted that substantial changes are likely as the Senate continues its review of the legislation. The developments have kept financial markets on edge, especially in light of Moody’s recent downgrade of the United States’ sovereign credit rating on May 16.
In currency trading, the US dollar saw varied movement across key pairs. The USDEUR pair declined to 1.1345 from 1.1386 as of Monday’s close, reflecting slightly improved—yet still cautious—consumer confidence across the Eurozone. Market participants await the next European Central Bank (ECB) policy meeting scheduled for June 4–5.
The pound sterling also dipped, with GBPUSD falling to 1.3549 from 1.3564, amid data indicating a sharp decline in UK car registrations and worsening retail and wholesale conditions. The Bank of England is set to meet next on June 19.
Meanwhile, USDJPY climbed to 144.0512 from 142.7709, reflecting subdued growth in Japanese corporate service prices for April. The Bank of Japan will hold its next policy meeting on June 16–17.
USDCAD rose to 1.3764 from 1.3737, supported by expectations around upcoming Canadian wholesale sales data. The Bank of Canada’s next policy decision is due on June 4.https://bizwatchnigeria.ng/investor-rush-sparks-yield-dip-as-nigerian-treasury-and-omo-bills-surge/
