Investing.com

Investing.com - The Japanese yen gained against the dollar on Monday after industrial production data came in below expectations.



Industrial production for May in Japan rose 0.5%, below expectations of a gain of 0.9% month-on-month.



USD/JPY traded at 101.39, down 0.03%, after the data, mildly reversing direction.



In New Zealand, new dwelling consents fell 4.6% in May, initially weakening NZD/USD, but it reversed course later in the day to trade flat at 0.8777.



Last week, the dollar ended the week lower against a basket of major currencies on Friday as upbeat U.S. consumer sentiment data failed to dispel concerns over the outlook for the wider economic recovery.



The report did little to alter expectations that the Federal Reserve will keep rates on hold for an extended period after data earlier in the week showed that U.S. first quarter growth was revised sharply lower.



The dollar weakened across the board after the Commerce Department said Wednesday that U.S. gross domestic product contracted at an annual rate of 2.9% in the first three months of the year, compared to the consensus forecast for a decline of 1.7%.



U.S. first quarter GDP was initially reported to have increased by 0.1%, but was subsequently revised to show a contraction of 1.0%.



The dollar came under additional pressure after data on Thursday showed that U.S. consumer spending rose by just 0.2% in May, below forecasts for 0.4%.



The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 80.09.



In the week ahead, investors will be looking to the U.S. nonfarm payrolls report on Thursday for further indications on the strength of the labor market, while Monday’s euro zone inflation report will also be in focus, ahead of the European Central Bank policy meeting and press conference on Thursday.



On Monday, the euro zone is to produce preliminary data on consumer price inflation, which accounts for the majority of overall inflation. Meanwhile, Germany is to publish data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.



The U.K. is to release data on net lending to individuals.



Canada is to publish the monthly report on gross domestic product, the broadest indicator of economic activity and the leading indicator of economic growth.



The U.S. is to produce data on manufacturing activity in the Chicago region and a report on pending home sales.





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