DXY: Almost touches 106.00 – DBS

Markets turn their attention to Friday’s US PCE deflator, DBS analyst Philip Wee notes.

All eyes are on Friday’s US PCE deflator

“The Dollar Index (DXY) rose 0.2% to 105.63 overnight but stayed in the 105.10-105.90 range set after the Federal Reserve meeting on June 12. At the moment of writing, DXY was almost touching 106.00 (+0.36%).”

“The same trading behaviour was also evident in the US Treasury 10Y yield, which firmed 1.6 bps to 4.25%, inside a 4.20-4.30% range for the comparable period.”

“All eyes will be on Friday’s US PCE deflator, which is expected to mirror the fall in CPI inflation a fortnight ago. Additionally, the Fed’s recent concern over the US unemployment rate rising to 4% in May has not gone unnoticed.”