Dollar Surges on Strong US Economic Data

The US dollar index (DXY00) is up by +0.23% today due to signs of strength in the US economy.

Personal spending and income rose more than expected in July, with personal spending increasing by +0.2% m/m and personal income rising by +0.4% m/m.

The Fed's preferred inflation gauge, the core PCE price index, rose +0.2% m/m and +3.3% y/y as expected.

However, gains in the dollar are limited after July capital goods new orders nondefense ex-aircraft and parts rose less than expected.