Key points:
- Dollar index steady near 104.30
- Markets brace for upcoming data
- Nonfarm payrolls report to close the week
Dollar index stays well-bid against rivals as forex traders brace for looming economic reports out of the US.
- The US dollar index
DXY floated near its three-month high early Tuesday after finishing the Monday session on a muted note. The gauge, measuring the buck’s strength against six peer forex currencies, gravitated toward 104.30 with a weekly high of 104.60. Keeping it well-bid is a big slate of economic data ready to roll in as traders expect volatility to pick up pace and create some trading opportunities. - Here’s what’s on the docket for this week. America’s economy is expected to show a 3% expansion on a quarterly basis, according to estimates for the GDP report, due Wednesday. Same day, investors will also be watching for the ADP nonfarm employment change, which will show how many new workers were added to the private sector in October. On Thursday, the personal consumption expenditures index (PCE) is due for release.
- The PCE is the Federal Reserve’s favorite inflation measure as it strips out prices of more volatile items, such as food and energy. Analysts expect October’s PCE number to show a slight uptick to 0.3% on a monthly basis, up from 0.1% the month prior. And Friday comes with the monthly jobs number — the nonfarm payrolls. Markets will be looking for 111,000 new jobs added in October, way below September’s 254,000.
