US dollar fluctuated lower in a narrow range in the Asian session to see its retreat against the Japanese Yen in the fourth session from its highest since May 31st, following developments and economic data by the Japanese economy, and on the threshold of key data release expected today by the US economy, the world's largest economy.
At 05:51 am GMT, the pair dropped 0.06% to 108.32 from the opening level of 108.38 after a low of 108.27 and a high of 108.40.
We have followed the Japanese economy releasing its final reading of the industrial production index, which showed a stable growth of 0.6%, unchanged from the previous preliminary reading for April, in line with expectations, compared with a 0.6% decline in March, while the annual reading for the same index showed stability at 1.1% and 4.3%, while the energy utilization rate showed a rise of 1.6% against 0.4%.
On the other hand, investors are currently looking for the US economy to reveal its reading for retail sales, which account for about half of consumer spending and for more than two thirds of the US gross domestic product, which may reflect a rise of 0.7% compared to a 0.2% decline in April, while the core reading of the same index may show growth accelerating to 0.5% versus 0.1% in April.
This comes before we see the release of manufacturing sector data for May with the release of the index of industrial production, which may show a rise of 0.2% compared to a decline of 0.5% in April, while the reading of the Capacity Utilization Rate index which may show an accelerated growth to 78.0% from 77.9% in April.
Leading to the release of the University of Michigan's consumer confidence index, which may reflect a widening of 98.1 versus 100 in May in addition to the inflation expectations for one year ahead and five years to come, which might go up to 0.4% against stability at zero levels in March.