Dollar hits six-week high ahead of US growth data

US Dollar's Rise in European Trade

The US dollar rose in European trade on Thursday against a basket of major rivals, extending gains for the third straight session and scaling a six-week high after bullish remarks by Fed member Christopher Waller, which hurt the chances of a June interest rate cut.

Now investors await a series of important US data later today on GDP growth for the fourth quarter.

The Dollar Index

The dollar index rose 0.4% today to 104.33, with a session-low at 104.30.

It closed up 0.1% on Wednesday, the second profit in a row as the US economy continues to prove itself flexible.

Waller's Statements

Federal Reserve member Christopher Waller said on Wednesday that there’s no rush to cut interest rates, and that he wants to see at least two months of low inflation data before cutting rates. He added that recent US data could delay the number of expected US interest rate cuts this year.

US Interest Rates

• Following his remarks, the odds of a 0.25% US interest rate cut in June fell from 72% to 60%.
• Investors are expecting 75 basis points of total US interest rate cuts this year.

US Growth Data

Now investors await a batch of important US data, including GDP growth for the final quarter of 2023, expected at 3.2%, down from 4.9% in the fourth quarter.

• US unemployment claims are expected up slightly to 212 thousand in the week ending March 23 from 210 thousand.
• US pending home sales are expected up 1.4% in February, following a 4.9% drop in January.

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