
The dollar index traded near 101.5 on Thursday, holding around its highest levels in more than a year as investors continued to price in Federal Reserve interest rate hikes later this year, while awaiting a key inflation report for further direction. Last week, the Fed signaled growing support for tighter monetary policy, with Chair Kevin Warsh reaffirming his commitment to restoring price stability. Those expectations have largely outweighed the impact of progress in US-Iran peace negotiations, which have pushed oil prices back to pre-conflict levels and helped ease inflation concerns. Market participants are now focused on the latest PCE price index report, the Fed’s preferred measure of inflation. Other closely watched releases include final first-quarter GDP figures, May personal income and preliminary durable goods orders data, as well as weekly jobless claims for the period ending June 20.

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