US Dollar remains steady near highs awaiting key US releases
LONDON (October 29) The US Dollar Index (DXY) consolidates near a three-month high in Tuesday’s early European session. The Greenback’s downside attempts remain limited, yet investors are wary of placing large US Dollar (USD) bets with key macroeconomic data releases ahead.
The focus on Tuesday will be on the US Consumer Confidence Index and the JOLTS Job Openings figures, which are expected to bolster the case of a solid US economy ahead of Wednesday’s Q3 GDP release.
The USD index, which measures the value of the US Dollar against the six main traded currencies, is on track to its best monthly performance in more than two years. Strong US data has forced markets to dial down expectations of a steep easing cycle by the Federal Reserve (Fed), pushing US yields higher and pushing the USD up with them.
Daily digest market movers: The US Dollar holds its ground with JOLTS jobs on focus
- US JOLTS Job Openings surprised in August with an increase to 8.05 million vacancies and is expected to have remained close to the 8 million openings in September.
- The Conference Board’s Consumer Confidence Index is seen improving to 99.5 from September’s 98.7 reading.
- These figures are likely to improve the expectations of the preliminary Q3 Gross Domestic Product (GDP) data, to be released on Wednesday. The US economy is expected to have grown at a 3% annualized pace, a strong expansion that could provide additional support to the US Dollar.
- On Friday, the Nonfarm Payrolls (NFP) report is expected to show a lower increase in employment than in the previous month. Such an outcome might cap the US Dollar’s rally.
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