US Dollar Index Holds Above 102 Mark, Nonfarm Data In Focus

Published on Jan 05, 2024 11:51

The US dollar index continued to stay supported, adding to its recent bounce from a five month low as upbeat economic cues boosted the currency. The dollar index currently quotes at 102.25, up marginally on the day as all attention has turned to the US nonfarm payrolls data due to come out later today. The index is currently just off its two week high. The US service sector signalled a quicker expansion in activity at the end of 2023, albeit only marginal overall, according to the latest PMI data from S&P Global. The faster upturn in output stemmed from stronger demand conditions as new orders rose at the sharpest rate since June. The seasonally adjusted final S&P Global US Services PMI Business Activity Index posted 51.4 in December, up from 50.8 in November and broadly in line with the earlier released `flash` estimate of 51.3. The rate of growth in output accelerated for the third month running and was the sharpest since July. Meanwhile, at 50.9 in December, the final S&P Global US Composite PMI Output Index was up slightly from 50.7 in November and signaled a marginal expansion in business activity.