US Dollar Lower as US Budget Deficit Hits $90 Billion in June

The US Dollar was lower in this morning’s Asian trading session, falling on news that the US Budget Deficit reached $90 billion last month.  The unexpected US Budget Deficit far exceeded market forecasts for a $35 billion deficit. The figure represents a serious decline from last year’s $6 billion surplus at the same point in 2016. Helping push market sentiment and the US dollar lower, was mixed US Producer Price Inflation data and news that US jobless claims fell by 3,000 to 247,000 last week.

map of usa covered in dollar

US Producer Price Inflation

 

Official data also released on Thursday shows that US Producer price inflation rose unexpectedly, although core readings  increased less than expected. Producer prices rose 0.1% in June, surpassing a 0.1% drop predicted by analysts. On a yearly basis, the producer price index (PPI) increased 2.0% last month, compared to predictions for a 1.9% increase. June’s increase follows a 2.4% increase in May  The data provides a mixed picture of inflationary pressures the world’s largest economy is facing right now.

US Jobless Claims

 

The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending July 8th fell by 3,000 to a seasonally adjusted 247,000 from the week before’s revised total of 250,000. Although the figure is consistent with a growing economy, the figures fell a little short of market expectations. Analysts had expected jobless claims to decline by 5,000 to 245,000 last week.

 

US Dollar Down

 

The unexpected leap  in the US Budget Deficit sent the greenback down in most major pairings. The USD is down 0.19% against the EUR, down 0.16% against the GBP and down 0.10% against the JPY.

 

 

The following two tabs change content below.