The US dollar rose to a 7-week high during Friday’s trading session, after the release of the latest PMI data which came in significantly above market expectations, further illustrating the underlying strength of the US economy. Sterling continued to edge lower in the aftermath of the recent Bank of England MPC (Monetary Policy Committee) meeting, where dovish commentary has led some market participants to believe a rate cut may come at their next meeting in August. Political pressure continues to weigh on the euro ahead of the first round of voting in the French elections, slated for June 30th.
*Daily move - against G10 rates at 7:30am, 24.06.24
** Indicative rates - interbank rates at 7:30am, 24.06.24
The US dollar continues to attract inflows as political instability in France weighs heavily on the single currency, and US economic data continues to outperform expectations. After the recent busy economic data calendar, this week is much lighter, with US Core PCE data (Fed’s preferred measure of inflation) due Friday taking centre stage. Elsewhere, markets will be closely watching the upcoming Biden/Trump debate due Thursday.
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