In this holiday-shortened week, ING economists expect US inflation to remain firm when announced on Friday, while analyzing the outlook for the US dollar (USD).
The DXY Dollar Index may rise to the 105.00 zone
Friday is a holiday in many parts of the world, but the key data of the week, the US core PCE deflator for February, is still released. There is a strong consensus around a 0.3% month-on-month reading, which will not be enough for the Fed's disinflation narrative.
However, there will also be quite a few Fed speeches this week. We want to know if the Fed has anything more to say about the seasonal glitches that make inflation data from earlier in the year look too strong, a topic introduced by Chairman Powell in last week's FOMC press conference.
A rising US stock market and the implications for US confidence and consumption make it difficult to argue with the Dollar at the moment, warning that the DXY Dollar Index may push higher towards the 105.00 area. But We continue to expect this strength to be temporary and would prefer to position ourselves for a downtrend in the second quarter..
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.