- The US dollar index jumps above 107.00 after the more hot inflation component in GDP data.
- The CME Fedwatch now shows an almost 35 % probability that the prices will remain fixed in June, as the discounts on the table continue.
- The focus will be turned into labor market data from February to be released at the beginning of March.
The US dollar index (DXY), which tracks the performance of the US dollar (USD) against six main currencies, extends on Thursday, as it exceeds 107.00, where the markets digest the second reading of the GDP of the United States (the United States) and its inflation. Traders have been neglected through the most hot personal consumption expenses (PCE), which enhances concerns about continuous inflation.
Daily Digest Market Movers: US dollar gatherings after the surprises of GDP
- The US GDP for the fourth quarter of 2024 came as expected by 2.3 %, confirming the continuous economic growth.
- PCE inflation component exceeded 2.4 %, while Core PCE increased to 2.7 %, compared to prediction 2.5 %.
- Initial unemployment demands in the United States rose to 224,000 for the week ending February 21, indicating twice the slight labor market.
- Continuous claims in the United States decreased to 1.862 million, overcoming 1.870 million expectations.
- On the Foreign Policy Front, US President Donald Trump planted confusion over the implementation of the customs tariff, which contradicts previous statements.
- The markets interact with the induction uncertainty as Trump doubles on 25 % of the fees on Canada and Mexico, which will enter into force on March 4.
Technical expectations: Dxy: Restore the Bulls Keys levels, but the momentum is still fragile
The US dollar index recovered with a power of 107.00, and the SMA is recovered at 106.60. The RSI and the average medium rapprochement (MACD) indicates improved momentum, but the upscale batch still needs confirmation. The resistance lies in 107.30, while support levels appear at 106.60 and 106.00 if there is a reflection.
