U.S. Dollar Higher Following Strong PCE Inflation Data
April 26 2024 - 9:22AM
RTTF2
The U.S. dollar moved up against its major counterparts in the
New York session on Friday, as the Federal Reserve's preferred
measure of inflation, the personal consumption expenditures price
index, exceeded expectations on an annual basis in March.
Data from the Commerce Department showed that the annual rate of
consumer price growth accelerated to 2.7 percent in March from 2.5
percent in February. Economists had expected the pace of growth to
tick up to 2.6 percent.
The annual rate of growth by core consumer prices in March came
in unchanged from February at 2.8 percent, while economists had
expected the pace of growth to slow to 2.6 percent.
On a monthly basis, the consumer price index rose by 0.3 percent
in March, matching the increase seen in February as well as
economist estimates.
Excluding food and energy prices, core consumer prices also
climbed by 0.3 percent for the second straight month, in line with
expectations.
The data reinforced hopes that the central bank will be cutting
interest rates by September.
The greenback jumped to a 3-day high of 1.0673 against the euro,
2-day high of 1.2449 against the pound and a 34-year high of 157.59
against the yen, from an early fresh 2-week low of 1.0752, 2-week
low of 1.2540 and a 2-day low of 154.95, respectively. The
greenback is likely to find resistance around 1.05 against the
euro, 1.22 against the pound and 160.00 against the yen.
The greenback recovered to 1.3695 against the loonie and 0.6517
against the aussie, off its early more than 2-week lows of 1.3632
and 0.6554, respectively. The greenback is seen finding resistance
around 1.39 against the loonie and 0.63 against the aussie.
The greenback moved up to 0.9150 against the franc, from an
early 3-day low of 0.9095. If the currency rises further, it may
find resistance around the 0.93 level.
The greenback advanced to 0.5929 against the kiwi, reversing
from an early low of 0.5969. The greenback is poised to challenge
resistance around the 0.58 level.
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