The dollar index rose to above the 104.4 mark, extending its rebound from the over-two-month low of 104 touched on June 3rd as strong economic data raised uncertainty over the magnitude of rate cuts to be delivered by the Fed this year. Data by the ISM showed that the US services sector activity grew the most in nine months during May, well above market expectations, and paring the improvement of credit conditions following softer results in the JOLTs and the ADP job market releases. Consequently, markets were roughly split in expecting one or two rate cuts by the Fed this year. In the meantime, dovish outlooks for other monetary authorities of G10 currencies drove the magnified the DXY’s rebound. The BoC commenced its rate-cutting cycle and the ECB is likely to follow this week, while slowing inflation raised bets of a BoE rate cut after the UK’s July election, and growth concerns make the BoJ hesitant to deliver another rate hike.
The DXY increased 0.1762 or 0.17% to 104.3303 on Wednesday June 5 from 104.1541 in the previous trading session. Historically, the United States Dollar reached an all time high of 164.72 in February of 1985. United States Dollar - data, forecasts, historical chart - was last updated on June 5 of 2024.
The DXY increased 0.1762 or 0.17% to 104.3303 on Wednesday June 5 from 104.1541 in the previous trading session. The United States Dollar is expected to trade at 104.93 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 105.85 in 12 months time.