Dollar Index rebounded in European session, ranging around 96.5

Dollar Index rebounded in European session, ranging around 96.5 | Zeal Capital Market

The CPI data in US was released on Wednesday, which performed in line with expectations. It further stabilizes the bounce back of the USD. On Thursday, the US dollar is ranging above 96 at 96.58. In short term, Dollar Index is likely to be uptrend.

 

US President Trump is considering to launch a series of fiscal stimulus packages. Although there are no more details, investors are expected the US economy, to a certain extent, still buffered by the impact of the current epidemic. On the other hand, the market expects the Fed to further cut interest rates by another 50 basis points. However, the dollar has no more decline so far, which imply that it may be priced in. Some investors believe that the US economy is still relatively stable compared to other economies, and the dollar has its own advantage.

 

On Thursday’s trading day, the focus will be on the ECB ’s rate decision, ECB President Lagarde ’s press conference, US PPI and initial jobless claims data. Market expectations now is that the European Central Bank will cut interest rates by 10 basis points.

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