The dollar is currently steady, down by 0.25%, after the $-Index rose by 0.45% to 106.10 in the previous session, reaching its highest levels since April 30 before dropping back to 105.75 on Thursday. This increase was supported by a rise in yields, with the ’10-yr’ reaching 4.33%, before slightly declining to 4.30%.
The Dollar weakened after the Q1 GDP was revised to +1.4%, while PCE inflation remained as expected at 3.4% on a “gross” basis and +3.7% on a “core” basis. Durable goods orders rebounded by +0.1%, exceeding the consensus of -0.6%, and weekly unemployment decreased by -6,000 to 233,000.
The dollar fell across the board, losing 0.4% against the euro, 0.3% against the pound, and 0.25% against the yen, which had hit a low of 160.85 the day before. The upcoming publication of the PCE price index and the live televised debate between Joe Biden and Donald Trump on CNN tonight could lead to more significant changes in the FOREX market.
With the election less than 5 months away, polls indicate a close race, with 46% of voting intentions for Trump and 45% for Biden. The debate tonight will be crucial in determining whether Biden can prove his capability to lead the country for another 4 years.