DOLLAR INDEX CAPTURES 103 MARK; US RETAIL SALES IN FOCUS

Published on Oct 15, 2024 09:20

The US dollar index is steadily rising and has gained momentum to a near two month high as investors are pricing a moderation in Federal rate cuts as against an aggressive path earlier. The Fed has indicated that it will monitor incoming data to adjust the pace of its monetary easing policy accordingly. The latest US economic data showed that the labor market remains resilient, while consumer inflation came in stronger-than-expected in September. The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies are quoting at 103.05, its best level since August this year. For the week, Thursday�s Retail Sales will be key for dollar direction. Among basket currencies, EURUSD and GBPUSD gain only marginally and are seen at $1.09 and $1.30 respectively.