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At 11:49 GMT, the U.S. Dollar Index is trading 99.362, up 0.175 or +0.18%.
Market Attention Turns to Growth and Inflation Data
Consensus estimates for Q1 GDP, based on a Reuters survey, point to an annualized growth rate of just 0.3%, with some economists revising forecasts lower following Tuesday’s report of a record US goods trade deficit. A negative reading would raise the specter of a technical recession should Q2 data also contract.
Meanwhile, the PCE index—closely watched by the Federal Reserve—is forecast to show a 0.5% monthly gain in core prices, with annual inflation stabilizing at 2.6%. If confirmed, this could reinforce the Fed’s cautious stance, supporting the case for potential rate cuts later in the year.
Dollar Slides for April Despite Midweek Rebound
On the session, the greenback advanced slightly against major peers. It rose 0.5% versus the yen to 143.05, though the Japanese currency remains on track for a 4.6% monthly gain, its best since July. The euro slipped 0.2% to 1.3625 but still holds a 5.3% gain for April. Meanwhile, the Swiss franc edged lower but was set to finish the month up 6.9%, its strongest monthly rise in over a decade, reflecting robust safe-haven flows.
Even with Wednesday’s uptick, the dollar has struggled to regain broad momentum. Comments from analysts at Commerzbank and ING suggested markets are pausing at current levels, waiting for confirmation of whether the US economy has indeed hit a soft patch—or something deeper.
Market Forecast: Dollar Faces Resistance Without Data-Driven Support
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