US Dollar Index (DXY) Rises on Better-Than-Expected Industrial Data

The US dollar is recording a modest gain during the Good Friday holiday trading session. While the broader North American and European financial markets are closed, forex investors are looking at some of the latest data, including industrial and manufacturing output.

According to the Bureau of Economic Analysis (BEA), industrial production rose 0.9% in March, topping the market estimate of 0.4%. On a year-over-year basis, industrial output eased to 5.5%.

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Industrial data highlighted gains in mining (7%) and utilities (7.5%).

Manufacturing production advanced 0.9% last month, beating the median forecast of 0.6%. On an annualized basis, manufacturing output eased to 4.9%.

In manufacturing numbers, durable and non-durable manufacturing expanded 1.3% and 0.4%, respectively. Also, capacity utilization at factories swelled to 78.7%, climbing above the long-run average of 78.1% for the first time in four years.

The NY Empire State manufacturing index surged to 24.6 in April, much higher than economists’ expectations of 0.5. This is also up from the -11.8 in March.

This comes after the BEA reported that retail sales rose 0.5%, initial jobless claims edged up to 185,000, and the University of Michigan Consumer Sentiment Index rising to a better-than-expected 65.7.

The US Treasury market ended the trading week way up, with the benchmark 10-year yield surging 0.138% to 2.827%. The one-year bill rose 0.072% to 1.755%, while the 30-year bond climbed 0.123% to 2.919%.

The US Dollar Index (DXY), which gauges the greenback against a basket of currencies, jumped 0.18% to 100.50, from an opening of 100.32. The index will record a weekly gain of 0.7%, lifting its year-to-date rally to nearly 5%. Over the last 12 months, the DXY has soared nearly 10%.

The USD/CAD currency pair increased 0.09% to 1.2614, from an opening of 1.2603, at 14:12 GMT on Friday. The EUR/USD fell 0.18% to 1.0811, from an opening of 1.0831.

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