U.S. Dollar Higher As PCE Inflation Data In Focus
April 28 2023 - 2:47AM
RTTF2
The U.S. dollar firmed against its major counterparts in the
European session on Friday, as market participants await the
personal consumption expenditure price index, the Fed's preferred
gauge of inflation, due out later today.
Economists expect the core PCE price index to rise 0.3 percent
month on month and 4.5 percent year on year in March.
Overnight data showed that the quarterly inflation reading
within the GDP data rose more than expected in the first
quarter.
The core PCE price index climbed 4.9 percent in the first
quarter after rising 4.4 percent in the fourth quarter. Economists
had expected a 4.7 percent increase.
The Fed meeting is due next week and traders are expecting an
85.7 percent chance of a 25-basis-point rate hike.
The greenback climbed to 0.8975 against the franc and 1.2446
against the pound, from an early low of 0.8927 and a 2-day low of
1.2503, respectively. The greenback may find resistance around 0.91
against the franc and 1.21 against the pound.
The greenback appreciated to a 2-day high of 1.0976 against the
euro and a 1-1/2-month high of 135.86 against the yen, off its
early lows of 1.1039 and 133.36, respectively. The currency is seen
finding resistance around 1.06 against the euro and 138.00 against
the yen.
The greenback touched 1.3667 against the loonie, its highest
level since March 28. The greenback is likely to face resistance
near the 1.38 level.
The greenback was higher against the kiwi, at 0.6123. On the
upside, 0.59 is possibly seen as its next resistance level.
The greenback firmed to a 1-1/2-month high of 0.6578 against the
aussie, reversing from an early 3-day low of 0.6642. Next immediate
resistance for the currency is seen around the 0.64 level.
Looking ahead, German preliminary inflation data for April,
Canada GDP data for February, U.S. PCE price index for March, U.S.
Chicago PMI for April, U.S. University of Michigan final consumer
sentiment index for April and U.S. Baker Hughes oil rig count data
are due in the New York session.
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