by Finimize Newsroom
Finimize
What’s going on here?
The US dollar held steady at 105.84 on June 24, 2024, as traders eagerly awaited upcoming US inflation data, which could sway future interest rate decisions.
What does this mean?
With the Dollar Index flirting with near eight-week highs, all eyes are on Friday’s release of the US personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. Economists predict a slowdown to 2.6% annual growth for the PCE index in May, which could enhance the likelihood of an interest rate cut as early as September. Despite potential tightening pressures from the Bank of Japan (BoJ), the yen weakened to its lowest level against the dollar since April. Meanwhile, currency strategists point to a slowdown in the US economy and softer core inflation readings as factors that could lead the Fed to start reducing policy rates. Key geopolitical events, including the first US presidential debate and the French election, are also set to impact global markets.