A hand holds a series of fanned out U.S. dollar notes.
Thomas Trutschel | Photothek | Getty Images
The dollar rose on Friday, extending gains after upbeat data on personal income, spending, and manufacturing in the U.S. Midwest, with market participants also taking profits on the currency’s short dollar positions this month.
The dollar index was down 2.1% for the month of April, its largest monthly loss since December. Next week’s U.S. data, which includes non-farm payrolls for April and key U.S. manufacturing and services indexes, should reinforce expectations of a strong recovery from the pandemic by the world’s largest economy.
“Another round of potentially strong data in the U.S. may add pressure to start discussing tapering,” said ING in its latest research note. “With some possible fresh weakness in Treasuries on the way, the U.S. dollar might find some respite against the low-yielders,” the bank added. After the Fed’s policy…