US Dollar attempts to maintain momentum, eleventh weekly gains

The US Dollar is attempting to maintain its winning streak since the summer, with the index set to print its 11th consecutive weekly gain. However, headwinds are building up, including the ongoing UAW strike, the US government shutdown, and GDP miss. The US Dollar Index is standing at 106.130 at the time of writing.

Traders should look for 107.19, the high of November 30, 2022, as the next profit target. Markets are digesting recent PCE numbers and the Chicago PMI number deteriorates further. The Core PCE yearly component increased from 4.3% to 3.9%, while the monthly core PCE decreased from 0.2% to 0.1%.

Personal Income ticked up from 0.2% to 0.4%, while personal spending went from 0.9% to 0.4%. The Chicago Purchasing Managers Index (PMI) dropped below estimates to 44.1, while the University of Michigan final readings saw Sentiment tick up from 67.7 to 68.1. Inflation expectations fell from 2.7 to 2.8%. Equities are mixed, with Hong Kong’s Hang Seng Index rising over 3%, while Japan’s Nikkei and Topix are down at their closing bell.

In Europe, equities are set to close in the green, with US equity futures seeing Nasdaq leading the charge. Markets are pricing in an 82.7% chance that the Fed will keep interest rates unchanged at its meeting in November. The benchmark 10-year US Treasury yield trades are lower at 4.52%, and investors are starting to buy bonds to safely park funds over the weekend with the government shutdown at hand.