Dollar Helped By Plunge In Amazon Stocks

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The US dollar index peaked at around 104.00 on Thursday before switching into corrective mode ahead of the weekend. The greenback derived support from the 102.80 area earlier in the day before bouncing back above the 103.00 mark ahead of the opening bell on Wall Street. 

The dollar eased from long-term highs amid a combination of the resurgent risk demand, lower US Treasury yields, and month-end flows on Friday. However, the buck refrains from a deeper retreat so far, in part due to a fall in US equities after a spectacular rally witnessed during the previous session. The Dow Jones opened nearly 0.5% lower, while the S&P 500 and the Nasdaq Composite are shedding more than 1% each in early deals. 

The investor focus is on Amazon now. Its shares opened more than 10% lower as the company’s first-quarter results disappointed investors in late trading on Thursday. The e-commerce giant posted sales of $116.4 billion, below the Wall Street consensus of $116.5 billion while sales at online stores fell 3% year-over-year. Furthermore, Amazon forecast weaker-than-expected sales for the second quarter. Dismal quarterly results serve as a reminder the US economy could struggle in the months ahead. 

Elsewhere, fresh economic data came in mixed, as the core PCE inflation fell more than expected last month, while the employment cost index jumped in the first quarter. In general, the data is in line with the Fed’s aggressive tightening plan. This, in turn, helps limit the downside potential for the dollar ahead of the central bank’s meeting due next week.