Weekly Roundup: US dollar rebounds as GDP beats forecasts
Currencies Direct December 4th 2023 - < 1 minute read
The safe-haven US dollar was on the defensive as last week’s session began, with a bullish market mood dampening demand for USD. A sharp drop in US Treasury yields also weighed on the ‘greenback’.
The currency continued to slide on Tuesday, despite a stronger-than-expected US consumer confidence reading.
Midweek brought a respite to the US dollar. The latest US GDP estimate for the third quarter was revised higher, with signs of a robust American economy helping to dispel bets on Federal Reserve interest rate cuts.
The core PCE price index on Thursday lent the ‘greenback’ further support. Although inflation cooled, signs that it remained sticky further deterred rate cut bets.
USD then initially wavered at the end of the week, as a shifting market mood triggered some choppy trade, before sentiment improved and the US dollar stumbled.
Markets are bracing for some high-impact releases this week, with the ISM services PMI being the first major event. A forecast improvement in activity could boost the US dollar.
The session closes with the latest non-farm payrolls report. Could an expected uptick in the number of US jobs created last month see the ‘greenback’ surge higher?
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Currencies Direct