USD climbs towards multi-day highs ahead of data release. Investors are closely watching the USD as it continues to climb toward multi-day highs. The anticipation of the upcoming data release is driving this trend, and the EURUSD has been impacted as a result. Traders are keeping a close eye on the key zone of 1.08000, as it is a critical level for the EURUSD. The dollar’s strong recovery is also having a significant impact on US yields, which are experiencing a strong purge.
What to Look Out For
The US dollar has recently gained momentum due to hawkish comments from Fed policymakers. Even though Friday’s PCE results indicate disinflation in the US economy. Today, final manufacturing PMIs are expected on both sides of the Atlantic. Additionally, the key US ISM manufacturing and construction spending reports are set to be released. Furthermore, a speech by an FOMC member, a permanent voter, is also anticipated.
Investors are closely monitoring these events, as they will provide insight into the state of the US economy. The hawkish comments from Fed policymakers have caused some to speculate that interest rates may rise sooner than expected. However, the disinflation indicated by the PCE results may temper these expectations.
Overall, today’s reports and speech will be crucial in determining the future direction of the US dollar and the broader economy. Investors will be paying close attention to any indications of inflation or deflation, as well as any hints regarding future monetary policy decisions. The euro’s decline is a result of the market’s risk aversion and the dollar’s strength. The Fed’s interest rate policy is diverging from the ECB’s, which is taking a hawkish stance on rate hikes. However, the region’s economic fundamentals have lost some momentum, which contrasts with the ECB’s position.
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