LONDON, June 3 Reuters The U.S. dollar rose on Thursday as traders awaited a batch of U.S. economic data that could set the tone at central bank meetings later this month.
Investors have bet on the dollar falling as the world recovers from the COVID19 pandemic, but they have lately grown nervous over whether a surprisingly strong U.S. economic rebound poses a threat to the assumption that interest rates will stay low for a long time.
The mood has kept speculators from adding much to short positions in recent weeks and has put the brakes on what a month ago seemed like a relentless downtrend.
Against the euro the dollar traded 0.2 higher at 1.2187, and it crept higher versus Antipodean currencies.
It rose 0.2 to buy 109.78 yen.
The dollar index, which measures the greenback against a basket of six currencies, rose to 90.112. It has found strong support around the 89.946 mark in recent sessions after falling 2 in April and a further 1.6 in May.
At least for now, most of what is happening is simply confirming the consensus narrative and thus surprises are low, said Mikael Milhøj, chief analyst at Danske Bank, noting the rangebound trade in eurodollar.
Maybe the next round of PMIs or the upcoming FOMC meeting can change that but we are likely going sideways for now amid a vacuum in key datasurprises, Milhøj said.
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