The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, lacks a substantial catalyst and might be flatlining going into Friday's PCE data, trading around 104.35 at the time of writing. The DXY edged higher overnight on the back of tariff comments from United States (US) President Donald Trump. An additional 25% levy on all auto imports was issued to come into effect on April 3 and countries such as Canada and the European Union were threatened with more tariffs if they look to team up in their response to the US.
On the economic data front, all eyes shifted towards the US Gross Domestic Product (GDP) release.The third reading for the fourth quarter did not bring much news to the table. Nervousness will now build towards the US Personal Consumption Expenditures (PCE) data due on Friday.
Daily digest market movers: Done for today
Nearly all important data for this Thursday have been released:
US GDP third reading of the fourth quarter of 2024:
Headline GDP Annualized came in a touch higher at 2.4% against the previous 2.3% reading.
The headline Personal Consumption Expenditures (PCE) Prices remained stable at 2.4%.
The core PCE component came in a touch softer at 2.6%, just below the 2.7%.
US weekly jobless claims fell to 224,000, beating the 225,000 estimate and coming from the previous 223,000. Continuing claims came in better at 1.856 million, below the expected 1.900 million estimate and 1.892 million last week.
At 15:00 GMT, the Kansas Fed Manufacturing Activity data for March is due. No forecast is available with the previous reading in contraction at -5.
At 20:30 GMT, the President of the Federal Reserve Bank of Richmond Thomas Barkin speaks about the economy to the Home Building Association of Richmond.
Equities are split again with European equities being stuck with a loss, while US equities are showing resilience and are heading into the green.
According to the CME Fedwatch Tool, the probability of interest rates
remaining at the current range of 4.25%-4.50% in May's meeting is 89.7%. For June's meeting, the odds for borrowing costs being lower stand at 63.6%.
The US 10-year yield trades around 4.37%, ticking up as traders are heading from US Bonds into Gold again
Source: Fxstreet
