DOLLAR INDEX REGAINS UPSIDE; UPCOMING US DATA IN FOCUS

Published on Nov 21, 2024 11:25

The dollar index spiked to a one-week high and regained strength to a yearly high in the previous session tracking higher yields amid rising geo-political tensions between Russia and Ukraine. Uptrend in the counter stays intact, supported by the economy`s resilience and limited expectations of aggressive Fed easing. Last week, Powell downplayed the need for aggressive easing, emphasizing the economy`s strength. He suggested slowing the pace of rate cuts to increase chances of achieving the right balance. The dollar index that measures the greenback against a basket of currencies is quoting at 106.55, off yesterday�s sharp spike and marginally lower on the day. Investors look forward to US data this week including US Initial Jobless Claims, S&P Global Flash PMIs, and the University of Michigan (UoM) final reading of Consumer Sentiment for November. Among basket currencies, EURUSD and GBPUSD are staying mildly positive at $1.0557 and $1.2650 respectively.