The U.S. dollar was seen trading mixed yesterday. Economic data was sparse for the day. The UK’s public sector net borrowing data showed that government borrowing fell to the lowest levels in a decade. The deficit dropped by 1.6 billion GBP on a year over year basis in April to 7.8 billion GBP.
Earlier in the day, the core CPI data from the Bank of Japan showed that core inflation rate increased at a slower pace of just 0.5% on a year over year basis in April. This was below estimates of a 0.6% increase and slower than March’s increase of 0.7%.
Looking ahead the economic data for the day will see the release of the UK’s inflation data. Economists forecast that UK’s consumer prices rose at a pace of 2.5% on an annualized basis in April. This marks the same pace of gains seen the month before. Core inflation rate is forecast to rise at a much slower pace of 2.2% on an annualized basis in April compared to 2.3% increase the month before.
The NY trading session will see the release of Markit’s flash manufacturing and services PMI. The main highlight of the day will of course be the FOMC meeting minutes which will be released closer to the evening.
