The US Dollar (USD) continues to lack significant trend and remains at the top of a two-month trading range. Interest rate volatility in the US remains low and that means there has been a resurgence of interest in the yen-funded carry trade, says Chris Turner, Global Head of Markets at ING.
US Presidential Debate and Core PCE to Drive USD Moves
“He Dollar remains on the sidelines ahead of two key event risks later this week. On Thursday night the first presidential debate between President Joe Biden and Donald Trump on CNN. It may be too early to expect this, but we will want to see if the dollar responds to who ‘wins’ the debate.”
“But the biggest market driver this week will be Friday core PCE reading. If it meets expectations for a 0.1% monthly reading, we suspect the short end of the US curve may turn lower and take the dollar with it. However, the bulk of any dollar decline will be felt against currencies such as the Australian dollar and Norwegian krone.”
“The US data calendar is quiet today, apart from what is expected to be a modest drop in US consumer confidence for June. The DXY will trade well within a range of 105.00 to 106.00.”
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.
