DXY Holds Above 101 as Strong US Growth Supports Higher Interest Rates Narrative
The US Dollar Index (DXY) has maintained its gains, hovering just above 101 as strong PMI figures reinforce the Federal Reserve's stance on higher-for-longer interest rates.
Recent data released by S&P Global showed robust manufacturing and service sector activity in the United States, with output growing at the fastest rate for over five years in September. This growth is expected to result in annualized growth of around 5% and a 4% gain in the third quarter as a whole.
The strong US economic growth has contributed to concerns about persistent inflation risks, which aligns with the Federal Reserve's narrative on higher interest rates. Additionally, oil prices have regained ground after declining for over a week, further supporting the US Dollar.