US DOLLAR SEES MILD GAINS AHEAD OF EVENTFUL WEEK

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US Dollar Index shows steady momentum, holds above 106.00.

Investors will eye bond auctions in the US as increased supply may fuel a hike in US yields.

Along with mid-tier reports, the week’s highlight will be March’s Personal Consumption Expenditures (PCE) data.

The US Dollar Index (DXY) is mildly edging higher on Monday, currently trading at 106.20. The Greenback’s strength is driven by robust domestic economic and persistent inflation pressures, which fuels a more hawkish stance by the Federal Reserve (Fed). Despite a quiet start to the week, the DXY continues its resilience, with signs pointing toward a possible retest of the November highs near 107.10.


The US economy demonstrates enduring strength with increased yields and robust growth, aiding the US Dollar's steadiness. Some Fed officials started to consider a rate hike as they see no progress on inflation. As for now, markets are delaying the start of the easing cycle. This week, the US will release Personal Consumption Expenditures (PCE) and Durable Goods from March, Gross Domestic Product (GDP) estimations from Q1, and S&P PMIs from April, all of which will likely impact expectations on the next Fed decision.



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