Asian session review: the dollar rose against most major currencies

During today's Asian trading, the dollar rose against most major currencies in anticipation of the April US inflation data.

The consensus forecast of experts provides for the acceleration of inflation in the United States in April to 3.6% in annual terms - the highest since September 2011-compared with 2.6% in March.

Several factors point to an increase in inflation, including wage growth, budget incentives and higher commodity prices, experts say. The Federal Reserve Bank of New York's inflation expectations indicator rose to 3.4% in April, the highest since September 2013, from 3.2% in March.

Experts believe that the acceleration of inflation may require the Federal Reserve to curtail stimulus measures earlier and faster than planned, which would support the dollar.

The pound consolidated against the US dollar, despite positive data on UK GDP. According to the report from Office for National Statistics, UK gross domestic product (GDP) is estimated to have grown by 2.1% in March 2021, the fastest monthly growth since August 2020, as schools in some parts of the UK reopened throughout the month. Economists had expected a 1.3% increase. March’s GDP is 5.9% below the levels seen in February 2020, and 1.1% below the initial recovery peak in October 2020. Latest estimates also show only small revisions to GDP in January (now negative 2.5%, from negative 2.2%) and February (now growth of 0.7%, from 0.4%).

The ICE index, which tracks the dollar's performance against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose 0.15%.