As traders and dealers prepare for the final trading day of the week, attention will remain on the US dollar, as participants weigh up the potential for a fresh rally. Both central bank speakers, as well as economic data, are supporting the renewed calls for US dollar strength. The Fed continues to promote the concept of higher rates for longer whilst the labour market and consumer both appear to be performing well.
The US dollar has seen some buying interest this week, continuing to probe the $1.20 level to the downside against the pound. EURUSD has crumbled since the ECB rate announcement earlier this month. After hitting the $1.1040 level the pair has dropped almost 5 cents to trade in the top half of the $1.05 handle as Friday’s European session gets underway.
The economic calendar today includes German GDP numbers, US PCE inflation metric, and housing data. Will the greenback pick up further momentum?!
Have a great weekend.
Written by Viv Savani. 6:32am, February 24th 2023
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