US Dollar Sees PCE Data No Change
The US Dollar (USD) is not far from its fresh two-year high of 108.55 reached during the Asia-Pacific trading session.
The move was supported by rising US Treasury yields, which widen the gap between interest rates with other countries. This means more support for the US Dollar as it becomes more valuable to invest and earn a good return on your savings.
Friday will be the last chance for traders to move any positions they may have with volatility set to increase.
This is due to the so-called Quadruple Witching, which occurs four times a year – every third Friday in March, June, September and December.
During the Quadruple Witching, four types of financial contracts expire simultaneously: stock index futures, stock index options, stock options and single stock futures. All of these need to be rolled over, wound up and settled, leading to a significant increase in trading volumes and sometimes volatility around major assets.
The US economic calendar has released the Personal Consumption Expenditures (PCE) Price Index for November.
All of the data points were below consensus views, making the release likely to be disinflationary. While the actual numbers were slightly lower, that did little to change the Federal Reserve’s recent stance.
Source: FXStreet
