Dollar Index Steadies Around 3-Month High; US Retail Sales Eyed

Published on Feb 15, 2024 11:24

The dollar index is steadying near a three-month high on Thursday, registering a small pullback from recent spike that followed higher than expected US inflation data. Data on Tuesday showed that the headline inflation rate fell to 3.1% in January from 3.4% in December, but came in above forecasts of 2.9%. The core inflation rate was unchanged at 3.9%, defying expectations for a slowdown to 3.7%. Reduced expectation of an early rate cut is keeping the greenback elevated. Meanwhile, Chicago Fed President Austan Goolsbee`s yesterday indicated that higher-than-expected consumer prices don`t necessarily rule out the possibility of the Federal Reserve considering interest rate cuts in 2024. The US Dollar Index (DXY), which measures the value of the USD relative to a basket of global currencies, retraced from a three-month high of nearly the 105.00 mark and hovers around 104.55. The US Treasury yields edge lower, with the 10-year yield standing at 4.26%. Retail Sales data and Initial Jobless Claims will be closely watched on Thursday. Among the basket currencies, EURUSD and GBPUSD are staying muted at $1.0744 and $1.2571 respectively.