Dollar Rallies After Surprise US Data Exceeds Expectations
The US dollar strengthened against its major counterparts on Monday after a batch of better-than-expected economic data from the United States.
According to Investing.com Canada, the dollar topped the G10 leaderboard following the release of headline PCE (Personal Consumption Expenditures) inflation rate, which rose to 3.7% year-over-year, surpassing the predicted 3.6%. Core inflation remained steady at 3.3%, while the second estimate of Q2 GDP confirmed growth at 1.5% annualised.
The data was accompanied by higher consumer spending and business investment growth, indicating firmer underlying momentum in the US economy. Combined with haven demand linked to Washington's 'Operation Economic Outcast', the DXY (Dollar Index) rose above 99 this morning.
Hawkish commentary from European Central Bank Executive Board member Schnabel supported the euro earlier in the day, but US data soon took over. Today's focus is on jobless claims and the opening of the Jackson Hole symposium, where Federal Reserve Chair Warsh will deliver a keynote speech tomorrow.