The US Dollar has thrived this week, flirting with a five-day winning streak.
Markets favored the US Dollar after jaw-breaking US PMI numbers.
The US Dollar Index trades above 105.00 and could set sail to the 105.50 area.
The US Dollar (USD) trades broadly stable on Friday and looks set to end the week in the green as the US Dollar Index (DXY) fights to log in a five-day winning streak. The USD seems to have fallen back into the graces of the markets as the rate differential is supporting a stronger Greenback against many of its peers. Both the Federal Reserve Minutes and Fed members throughout the week have been vocal on their concerns about inflation and that the initial rate cut will be happening only when all conditions are met.
The broad US Dollar strength was supported on Thursday by stronger-than-expected Purchasing Managers Indexes (PMIs) for May. The data suggested that US business activity expanded at the fastest pace in just over two years, led by an upturn in the services sector.
On the economic data front, there are two main components that could snap the four-day winning streak for the DXY. First up, the preliminary Durable Goods Orders data for April. Secondly, the University of Michigan Consumer Sentiment and Inflation expectation release for May will deliver the last data point for this week.
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