Dollar Rally Pauses as Markets Weigh Trump Plan
The US Dollar eased back as FX traders focus on the likelihood of President Trump’s tax plan making its way through the US Congress. Markets are also considering the Fed’s latest rhetoric and the possibility of another rate hike being pushed through this year. The US Dollar Index, a measure of the greenback’s relative strength, was up 0.1% on the day, holding just below yesterday’s high of 93.666 .DXY, a level not seen since mid-August. Through Thursday, the Index gained 1.1% and, if the uptrend continues, is poised to record the largest 1-week gain since last year.
As reported at 11:19 am (JST) in Tokyo, the USD/JPY was trading at 112.54 Yen, up 0.22%; the pair had hit a high of 112.675 Yen while the session low stands at 112.285 Yen. The AUD/USD is down 0.13% and trading at $0.7842 while the NZD/USD is currently at $0.7215, down 0.22%.
Consumer Data to Catch Market Attention
Later today, markets’ attention will be drawn to the Eurozone with the release of preliminary CPI data for September. Then later in the day, the focus will be on the US release of August data on Personal Consumption Expenditures. Analysts are forecasting a rise in both PCE and core PCE. Personal income and personal spending figures will also be released.