The USD is rounding out the week on a firm note. PCE deflator data today may support a rise, economists at Scotiabank report.
Broader gains in the DXY may extend another 1-2% in the next few weeks
“Hawkish Fed perspectives and positive seasonal patterns are boosting the USD generally and further gains, which serve to correct some of the late 2022/early 2023 decline in the DXY, look likely to develop in the next few weeks.”
“Minor USD dips remain a buy, with technical signals suggesting a well-established bull trend is developing on the short-term charts at least. Broader gains in the DXY may extend another 1-2% in the next few weeks.”
“Only a modest deceleration in core PCE is expected in Jan (4.3% YoY, from 4.4%); elevated data may lift the USD.”
See – US Core PCE Preview: Forecasts from eight major banks, meaningful acceleration
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