US Dollar Index (DXY) steadies above 98.30 ahead of US inflation figures
The US dollar consolidates gains against its main peers on Friday, buoyed by a string of upbeat US macroeconomic releases. The USD Index, which measures the value of the Greenback against a basket of currencies, has been trading right below three-week highs at 98.60 with downside attempts contained at 98.30, on track for a 0-85% weekly gain.
The US Commerce Department revised the second quarter’s GDP growth to 3.9% from the previously estimated 3.3% and up from a 0.5% contraction in the first quarter. Beyond that, US jobless claims dropped to their lowest levels since July, and Durable Goods Orders bounced up unexpectedly.
These figures curbed investors' expectations of immediate rate cuts by the Federal Reserve, before some of the central bank’s committee members highlighted their wide divergences on the near-term monetary policy path.
Chicago Fed President Austan Goolsbee showed concerns about lowering rates too fast, based solely on payroll growth. San Francisco President Mary Daly was open to “a little bit” more rate cutting, while Triump’s last appointment, Stephen Miran, continued pressing for a jumbo rate cut next month.
In this context, investors are looking at the US PCE Prices Index for more clues about the rate path. Headline inflation is expected to have ticked up to a 2.7% yearly rate from 2.6% in July, while the core inflation is seen steady at 2.9%.
Source: FXstreet
