The Dollar marks time (-0.25%) the day after a session which saw the ‘$-Index’ climb by +0.45% towards 106.10 to test its best levels since April 30, before fall back towards 105.75 this Thursday.
The Dollar had been supported by a clear rise in rates (up to +10Pts for the ’10 year’ towards 4.33%) which calmed down a little with a slight decline of -1.5Pt (over 24 hours) of 4.315% around 4.300%).
The greenback weakened shortly after 2:30 p.m. following the upward revision of 1st quarter GDP to +1.4% (definitive).
‘PCE’ inflation came out in line with expectations at 3.4% in ‘raw’ data and +3.7% in ‘core’ data (excluding volatile components).
No surprises on the inflation side, however orders for durable goods rebounded by +0.1% (the consensus expected -0.6%) and weekly unemployment contracted by -6,000 to return to 233,000.
The Dollar is falling on a broad front: by -0.4% against the Euro (which rises towards 1.0722), by -0.3% against the Pound, by -0.25% against the Yen ( which tested a floor of 160.85 the day before, a JPY/USD parity never seen since 1986.
The situation could evolve more spectacularly on FOREX with the publication, tomorrow, of the PCE price index – the Fed’s preferred measure of inflation – then especially this evening the face to face between Joe Biden and Donald Trump for their first live televised debate, scheduled this evening on CNN.
Less than 5 months before the election, polls predict a particularly close election (46% voting intentions for D.Trump, 45% for J.Biden), and the suspense remains over Joe Biden’s ability to demonstrate that he has all his faculties to continue to lead the country for 4 more years.
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