Dollar Little Changed on Friday
The dollar index was little changed at around 102 on Friday, as disappointing earnings from major tech companies and renewed concerns over the sustainability of the AI-driven rally triggered a flight to safety. Nevertheless, the greenback is up 0.2% for the week and 0.5% for the October month, as investors continue to assess the economic outlook and the Federal Reserve's policy path. US data released on Thursday showed that the US economy expanded at a stronger-than-expected annualized rate of 3.4% in Q3, supported by robust consumer spending and AI-driven investment. The US PCE price index also increased 0.5% in September, marking its largest monthly gain since March and reinforcing expectations of a Fed rate hike later this year. Although the central bank maintained interest rates at current levels on Wednesday, markets continue to assign roughly a 72% probability of a rate increase in December, according to the CME FedWatch Tool.
The dollar index was little changed at around 102 on Friday, as disappointing earnings from major tech companies and renewed concerns over the sustainability of the AI-driven rally triggered a flight to safety. Nevertheless, the greenback is up 0.2% for the week and 0.5% for the October month, as investors continue to assess the economic outlook and the Federal Reserve's policy path. US data released on Thursday showed that the US economy expanded at a stronger-than-expected annualized rate of 3.4% in Q3, supported by robust consumer spending and AI-driven investment.
The US PCE price index also increased 0.5% in September, marking its largest monthly gain since March and reinforcing expectations of a Fed rate hike later this year. Although the central bank maintained interest rates at current levels on Wednesday, markets continue to assign roughly a 72% probability of a rate increase in December, according to the CME FedWatch Tool.