US Dollar Off Session Lows on Friday Ahead of US PMI Release
The US Dollar Index (DXY), which tracks the performance of the US Dollar against a basket of six major currencies, regained ground above 107.50, although it still faces intraday losses on Friday after US President Donald Trump surprised with his comments earlier in the day casting doubt on tariffs against China. The comments came after Trump had a phone call with Chinese President Xi Jinping. Meanwhile, the Bank of Japan (BoJ) raised interest rates by 25 basis points, triggering substantial losses for the US Dollar (USD) against the Japanese Yen (JPY).
On the economic data front, Markit has released the preliminary readings of the German Purchasing Managers’ Index (PMI) for January, with some strong upbeat numbers, which triggered further strength in the Euro (EUR) against the US Dollar (USD). This Friday, the US will receive the preliminary readings of the S&P Global PMI for the same month. The University of Michigan will close out the day with the final reading of its Consumer Sentiment Index for January.
Source: FXStreet