US Dollar Index gains traction to above 97.50 amid mixed US economic data
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades in positive territory for the second consecutive day around 97.55 during the Asian trading hours on Friday. Investors brace for the US Durable Goods Orders for June, which is due later on Friday.
The Greenback holds positive ground amid mixed US economic data. Data released by S&P Global on Thursday showed that the US flash Manufacturing PMI dropped to 49.5 in July from the previous reading of 52.0. This figure came in weaker than the market consensus of 52.5. Meanwhile, the Services PMI rose to 55.2 in July from 52.9 in June, stronger than the 53.0 expected. Finally, the Composite PMI improved to 54.6 in July versus 52.9 prior.
Traders await the Federal Open Market Committee (FOMC) policy meeting next week. The FOMC is expected to hold the rate steady at its July meeting as policymakers prefer to wait for clarity on the expected impact of tariffs on inflation. Financial markets have priced in nearly a 60% possibility of a 25 basis points (bps) September rate cut.
Source: FXStreet
