US Dollar Index (DXY) holds gains near 98.00 with US GDP on tap
The US dollar remained practically flat at 97.85 on the European morning trade on Thursday, consolidating gains after a 0.65% rally on Wednesday, as Federal Reserve officials warned against hopes of back-to-back interest rate cuts.
San Francisco Fed President, Mary Daly, reiterated the view of Chairman Powell the day before, suggesting that the next interest rate cut might not be imminent. Daly acknowledged the need for lower interest rates but stated that the balance between the two mandates, employment and inflation, requires proceeding with caution.
Later today, investors will be attentive to the final reading of the US Q2 GDP, which is expected to confirm that the economy grew at a 3.3% annualized rate. These figures and more speeches from Fed policymakers are likely to drive US Dollar crosses later today.
The highlight of the week, however, will be the US Personal Consumption Expenditures (PCE) Price Index report due on Friday. Investors will be eager to assess the impact of trade tariffs on consumer prices for a better assessment of the Fed’s near-term monetary policy decisions. Any divergence from the market consensus is likely to have a significant impact on the USD.
Source: FXstreet.com
