US DOLLAR FINDS FOOTING WITH MILD GAINS FOLLOWING GDP AND LABOR MARKET DATA
- US Q1 GDP reveals reduced expansion at 1.6% YoY.
- On the positive side, weekly Jobless Claims come in strong.
- Friday’s PCE data from March will dictate the pace of DXY in the short term.
The US Dollar Index (DXY) is seen trading mildly down at 105.75 on Thursday and struggling to gain more ground following its extended rally in April. The Index weakened following Gross Domestic Product (GDP) data from Q1, but losses may be limited after strong labor market data was reported during the European session.
The US economy remains resilient but is expected to grow at a slower pace due to inflation and higher interest rates. The Federal Reserve (Fed) remains firm on its stance and seems to not want to rush to start easing and market hawkish adjustments provide a cushion to the USD. Personal Consumption Expenditures (PCE) data from March will likely affect those investors’ expectations.
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