The FOREX had another rather quiet session, but the momentum is reversing on the Dollar, which is back up +0.2% (instead of eroding 0.05% since February 12).
The $-Index is up +0.15% at 104.00, reflecting the gap seen against the Euro (down 0.15% at 1.0825) and the Yen (150.70).
The greenback also gained 0.35% against the Canadian dollar, which was the weakest currency of the day, apart from the Turkish lira, which has been falling with metronome regularity by 0.3% or 0.4% every day for the past 6 months.
The dollar had started the day well, but its rise was halted by the publication, at 2.30pm, of the second estimate of US growth for the fourth quarter of 2023, down slightly to 3.2% annualized, according to the Commerce Department.
Symmetrically, the euro did not suffer from the improvement in certain indicators, such as the PMIs published last week – but the overall picture remains gloomy.
Forex traders will have their sights set on the ‘PCE’ index this Thursday, and in particular the ‘PCE Core’, the inflation gauge most closely followed by the FED.
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