The US Dollar showed signs of strength following the release of preliminary Purchasing Managers' Index (PMI) readings, which have had a notable impact on the currency's performance. As a result, the GBP/USD pair, which first skyrocketed, has pulled back to the 1.2920 area. This is all happening as market participants are deeply attuned to business and consumer surveys. Just as important, they’re watching the Fed’s preferred inflation measure, Core Personal Consumption Expenditures (PCE), which will be released later this week.
That’s because preliminary PMI readings have been highly correlated in leading the firmer tone in the US Dollar. As these indicators reflect the economic health of the manufacturing and services sectors, they provide insights into future economic activity. The dollar rally is evident across almost every currency pair. Indeed, the GBP/USD has retreated from its early boosts and is currently trading around the key 1.2920-support level.
US economy has closely watched by market analyst. Recent business and consumer surveys underscore its shaky course. Recession or not, these surveys will provide more insight into what’s likely to come in terms of economic sentiment and trends. The Core PCE is the Federal Reserve’s favorite inflation measure. It is expected to provide important clues as to the degree of inflationary pressures and will inform the path of monetary policy in the months ahead.
In other bullish and parallel financial news, the US Strategic Crypto Reserve is considering adding Dogecoin DOGE. This step has sparked optimism in the broader crypto sphere. In tandem with this news, talks to launch a DOGE Exchange-Traded Fund (ETF) are reportedly in progress. Dogecoin open interest dropped down to around four-month lows mid-March. It has started to bounce back slowly due largely to the recovery of oil and gas markets.
Please note, this article does not constitute investment advice. Instead, it offers a break down of recent major market trends. The writer and FXStreet are not registered investment advisors. Their views are their own and do not reflect the view of FXStreet or its sponsors.