Dollar Holds Advance Ahead of Key Data
The dollar index hovered above 97.8 on Thursday after rebounding sharply in the prior session, as traders awaited key labor and inflation data to shape expectations for Federal Reserve policy. Weekly jobless claims due later today come amid mounting concerns over labor market weakness and rising layoffs, while Friday’s PCE price index will offer insight into the impact of tariffs on inflation.
Recent Fed commentary has further clouded the outlook for rate cuts, with markets no longer fully pricing in a reduction next month. Futures currently imply 43 basis points of easing across the Fed’s remaining two meetings this year. Uncertainty over a potential government shutdown has also added to market uncertainty.
Source: Tradingeconomics.com