FOREX
The US dollar index, which gauges the greenback's performance against a basket of major currencies, showed little movement in early Friday trading after a 0.34% drop in the previous session, bringing it below the 105 level.
Traders responded to a softer-than-expected American GDP reading, causing the dollar to retreat from a multi-week high. This morning's stabilisation precedes the release of PCE data later today, which is considered the Fed's preferred inflation gauge.
The outcome could influence expectations for rate cuts, shifting them to as early as September or closer to November, depending on whether the reading falls below or exceeds expectations. A higher reading would likely bolster the dollar, while a lower one could lead to further weakness.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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