Home Business News Dollar mixed ahead of US GDP and PCE index

The dollar index was slightly higher today after yesterday’s volatile session but remained below the key level of 105 points. Traders could remain cautious ahead of the key US inflation data scheduled for release this Friday.

At the same time, the greenback is supported by a consistent and notably hawkish stance from Federal Reserve officials.

For instance, Minneapolis Fed President Neel Kashkari has advocated for postponing interest rate cuts until significant inflationary improvements are observed and has even suggested potential rate hikes if inflation persists.

This sentiment was further strengthened by more positive economic data, which included robust consumer confidence.

A slew of economic indicators could bring volatility to the dollar, starting Thursday with the US GDP data and the awaited Personal Consumption Expenditure (PCE) Index later. The dollar could see some pressure if GDP data continues to slow down.

On the other hand, the PCE index is anticipated to hold steady at 0.3% month-on-month for the third consecutive month. Lower-than-expected PCE data could drive the dollar and treasury yields lower as traders could review their expectations regarding interest rate cuts.

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