Weekly Roundup: US dollar recoups losses as mood sours 

Amy Richards October 24th 2023 - < 1 minute read

The US dollar came under pressure early last week in the wake of comments from Federal Reserve officials who said that rising Treasury yields could negate the need for further interest rate hikes. 

This continued to pressure the ‘greenback’ through Tuesday’s trade, although stronger-than-forecast retail sales cushioned the currency. 

Midweek, USD managed to regain ground as a souring market mood provided the US dollar with safe-haven flows. 

Thursday and Friday then brought some choppy trade for the ‘greenback’. Although a persistently downbeat mood lent USD some support, declining US Treasury yields weighed on the currency. 

Turning to this week’s session, the US dollar started on a sour note as investors scaled back Fed rate hike bets following a spike in US Treasury yields. 

USD investors are now looking ahead to some potentially high-impact data later in the session. 

An expected acceleration in US third-quarter GDP could boost the ‘greenback’ on Thursday, if it is seen as raising the likelihood of another Fed hike. 

However, a forecast cooldown in US inflation on Friday may undermine the US dollar. 

Written by
Amy Richards

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