U.S. Dollar Appreciates Ahead Of PCE Data
February 24 2023 - 12:18AM
RTTF2
The U.S. dollar climbed against its major counterparts in the
European session on Friday, as investors awaited the release of
U.S. personal consumption expenditures price index, the Fed's
preferred gauge of inflation, due out later today.
Core PCE inflation is expected to rise to 0.4 percent in January
from 0.3 percent in December on a monthly basis.
On an annual basis, core PCE inflation is forecast to ease to
4.3 percent from 4.4 percent.
Initial jobless claims came in lower than expected at 192,000
last week, in a sign that labour market remained tight.
Investors expect the Fed to raise interest rates further as
recent data signalled a resilience in the economy.
The greenback rose to 0.6205 against the kiwi, 1.0580 against
the euro and 1.3578 against the loonie, from its prior lows of
0.6244, 1.0614 and 0.6244, respectively. The greenback may find
resistance around 0.61 against the kiwi, 1.04 against the euro and
1.37 against the loonie.
The greenback was up against the franc, at a 1-1/2-month high of
0.9365. Next key resistance for the dollar is seen around the 0.96
level.
The greenback approached 0.6778 against the aussie, its
strongest level since January 6. The greenback is seen facing
resistance around the 0.66 level.
The greenback rebounded to 135.20 versus the yen, from an early
4-day low of 134.05. On the upside, 137.00 is possibly seen as its
next resistance level.
In contrast, the greenback pulled back against the pound and was
trading at 1.2025. If the currency slides further, 1.22 is likely
seen as its next support level.
U.S. personal income and spending data and new home sales for
January and University of Michigan's final consumer sentiment index
for February will be featured in the New York session.
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