Dollar Index Set For Weekly Gain; US Core PCE Eyed

Published on Oct 27, 2023 11:05

The dollar index is staying flat during Asian hours on Friday following an overnight spike on the back of rising benchmark treasury yields as GDP data overnight suggested US economy stayed resilient and reinforced the higher-for-longer view on interest rates. US economy expanded by an annualized 4.9% in Q3 after jumping by 2.1 percent in the second quarter and comfortably surpassing the 4.3% forecast. Furthermore, durable goods orders witnessed a significant jump of 4.7% in September, the most substantial increase since July 2020, well above the market consensus of 1.7%. The dollar index that measures the greenback against a basket of currency however continues to hold well above 106 mark at 106.36. DXY is seen set for a weekly gain of around 0.3%. Sharp weakness in euro during the last few days amid diminishing economic outlook in Eurozone and which comprises over 50% in the index also benefited the greenback. Among the basket currencies, EURUSD gave up $1.06 levels and was quoting at $1.0590 whereas GBPUSD was trading at $1.2143. For the day ahead US core PCE figures are awaited for further cues.