DXY: It is almost reaching 106.00 – DBS

Markets are focusing their attention on Friday’s US PCE deflator, says DBS analyst Philip Wee.

All eyes on Friday’s US PCE deflator

“The Dollar Index (DXY) rose 0.2% to 105.63 overnight, but remained in the 105.10-105.90 range established following the June 12 Federal Reserve meeting. At the time of writing, the DXY was almost touching 106.00 (+0.36%).”

“The same trading behavior was also evident in the US 10-year Treasury yield, which strengthened 1.6 basis points to 4.25%, within a range of 4.20-4.30% for the comparable period.”

“All eyes will be on Friday’s US PCE deflator, which is expected to reflect the drop in CPI inflation from a fortnight ago. In addition, the Fed’s recent concern about the increase in the interest rate US unemployment at 4% in May has not gone unnoticed.

Source: Fx Street

You may also like