Dollar a bit weaker ahead of the US GDP data

Although the dollar is still weak, losses are currently contained. This week’s significant US macroeconomic data releases could influence the value of the dollar. Technically speaking, the Dollar Index is still bearish in the foreseeable future.


The stronger-than-expected S&P Global PMI surveys on Friday did not help the dollar, as the US Dollar Index ended the previous week nearly unchanged. The USD is still seeing some slight selling pressure against its competitors at the start of the new week.

Investors should hold off on placing bets on more USD depreciation until the important macroeconomic data releases later in the week, such as the first quarter Gross Domestic Product and the April Personal Consumption Expenditures (PCE) Price Index.

The US Dollar Index, which measures how the USD performs against a basket of six important currencies, trades little lower on the day at just over 101.50.

According to data from the US released on Friday, the private sector’s economic activity grew at a faster rate in April, with the S&P Global Composite PMI increasing to 53.5 (flash) from 52.3 in March.

In the same time frame, the S&P Global Manufacturing PMI increased to 50.4 from 49.2, and the Services PMI increased to 53.7, exceeding analysts’ expectations of 51.5. Monday’s opening of Wall Street’s major indices was uneven. The S&P 500 was down 0.15% at the time of publication, while the Dow Jones Industrial Average was up 0.1%.

The 10-year US Treasury bond yield is negative but maintains a level over 3.5%. The National Activity Index remained at -0.19 in March, according to data released by the Federal Reserve Bank of Chicago. Although this number was weaker than the market’s forecast of -0.02, there was no discernible market reaction.