The US Dollar (USD) is ending the week on a mixed note. But the Dollar Index (DXY) is turning lower from its intraday high, reflecting a bounce in the EUR from early session lows, and that leaves a small dent in the near-term technical outlook for the index and could point to further losses. broad prospects to develop in the next day or so, says Shaun Osborne, Chief FX Strategist at Scotiabank.
Yields are supportive for USD
“The JPY is a relative loser on the session, meanwhile. The BoJ’s Tankan survey reflected a small but unexpected improvement in business sentiment in the fourth quarter, but the proliferation of reports this week suggesting that policymakers in the “BoJ in no rush to tighten have reduced expectations of a rate hike next week. Sterling is also a relative loser on the day following weak data reports in the UK.”
“Notably, or strangely, the DXY continues to follow its performance profile following President-elect Trump’s first victory in 2016, with the earnings trend bucking the DXY’s usual seasonal softness in December. US yields somewhat firmer “Perhaps they have something to do with that. Expectations for next week’s core PCE data have been gauged by yesterday’s PPI release, despite the headline’s overshoot relative to forecasts.”
“Consensus estimates suggest a 2.8% year-on-year rise in core PCE, a tenth lower than prevailing forecasts before the data. Still, some Fed policymakers might be concerned about broader stagnation in the process of disinflation seen since mid-year and US yields are posting some solid gains on the week, with the 10-year yield rising about 18 basis points. That will be some support for the. “USD at least moving towards light trading next week before the holidays.”
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.
