Dollar Resilience Continues Ahead of Key Data Releases
The US Dollar (USD) has shown resilience against its rivals in the European morning on Thursday, October 1. This comes ahead of a busy day for economic data releases, including weekly Initial Jobless Claims and the Institute for Supply Management's (ISM) Manufacturing Purchasing Managers' Index report for September.
According to data from earlier this week, the USD was the strongest against the Swiss Franc (CHF), with a 1.05% gain.
In related news, economists at Societe Generale note that August inflation data offered only limited comfort to the Federal Reserve (Fed). They highlight that while core PCE undershot expectations, the underlying picture is less reassuring, with softer core goods inflation masking a reacceleration in core services and super-core inflation.
Minneapolis Fed President Neel Kashkari delivered a hawkish-leaning message on Wednesday, emphasizing concerns about inflation near 3% and suggesting that the neutral rate may be higher and elevated at least for now. He explicitly penciled in one more hike this year and another in 2027, signaling a bias toward further tightening if the economy and inflation fail to cool meaningfully.