US dollar boosted by upbeat data

The US dollar rose against most major rivals on Thursday following strong data.

In a partisan vote on Thursday, the House of Representatives voted in favor of Trump’s bill to cut taxes and increase military spending.

The bill, which has now moved to the Senate, is expected to increase government debt by trillions of dollars and spike the deficit, in a time of increasing concerns about tariff-related inflation.

The budget office at Congress estimates the cost of the tax bill at $4 trillion.

US 30-year treasury yields are up to 5.1%, the highest since 2023.

US 10-year note yields traded at just below 4.6%, with higher long-term yields usually pressuring the economy and impacting interest rates across economic sectors.

Earlier US data showed unemployment claims fell last week to 227 thousand, below estimates of 230 thousand.

US combined PMI rose to 52.1 in May from 50.6 in April, which was a 19-month nadir.

US services PMI rose to 52.3 in May from 50.8, while the manufacturing PMI rose to 52.3 from 50.2.

Otherwise, the dollar index rose 0.4% as of 19:44 GMT to 99.9, with a session-high at 100.1, and a low at 99.4.

Loonie

The Canadian dollar fell 0.1% against its US counterpart as of 20:00 GMT to $0.7211.

Sterling

The pound rose 0.1% on the dollar today to $1.3424.

Earlier UK data showed the manufacturing PMI shrank to 45.1 this month from 45.5 in April, while analysts expected 46.2.

The UK services PMI rose to 50.2 in May from 49 in April, while analysts expected 50.