DOLLAR INDEX ACCELERATES ABOVE 107 MARK; ALL EYES ON US PMI DATA

Published on Nov 22, 2024 12:39

The US dollar index accelerated gains above 107 mark on Friday following US data that indicated a strong labor market and amid growing safe haven demand from escalating tensions in Russia and Ukraine. Data released on Thursday showed that US weekly initial jobless claims unexpectedly fell to a seven-month low, signaling continued strength in the labor market which pare back expectations of the Fed rate cut. Initial Jobless Claims for the week ending November 15 decreased to 213,000, below expectations. Continuing claims however unexpectedly surged to 1.908 million, rising by 36,000 from the previous week. Recent comments from Fed officials, including Chair Jerome Powell, have indicated the central bank may take a slower course in its rate cut path. Meanwhile, Fed`s Goolsbee also said the pace of rate cuts may need to slow. The dollar index that measures the greenback against a basket of currencies is quoting at 107.12, up 0.18% on the day and near a two-year peak. Investors now await US manufacturing PMI data later in the day. Among basket currencies, EURUSD and GBPUSD and quoting lower by 0.1% at $1.0479 and $1.2572 respectively.