United States Dollar Index strengthens to near 101.50, US ADP and PCE data loom
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 101.40 in the early European trading hours on Wednesday.
The US Dollar Index (DXY) has risen to near 101.50, driven by expectations of more interest rate hikes from the Federal Reserve (Fed). The ADP employment and Personal Consumption Expenditures (PCE) Price Index reports will be key later in the day. A stronger job market or hotter inflation could boost the DXY. The US economy is expected to add 90,000 jobs in September, with the unemployment rate remaining steady at 4.1%.
Despite increased hawkishness from Fed officials, the FXS Fed Sentiment Index remains in a slight pullback, showing a tone of slightly more hawkishness but generally consistent with the baseline. The Dollar Index Spot is still bullish near-term, holding above the 100-day simple moving average (SMA) and Bollinger Bands' middle line, approaching the resistance level at 101.95.
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