Weaker-than-expected PPI and higher jobless claims weigh on USD, though hawkish Fed comments limit losses before key economic releases.
The US Dollar Index (DXY) fell below the 100.00 mark on Friday, pressured by softer-than-expected Producer Price Index (PPI) data and a rise in weekly jobless claims. These figures reduced expectations for further Federal Reserve tightening, though hawkish remarks from Cleveland Fed President Beth Hammack helped curb losses.
Earlier, the DXY had shown resilience, with the USD strongest against the New Zealand Dollar. EUR/USD held gains near 1.1500, while GBP/USD remained below 1.3500 following mixed UK data. USD/JPY traded steady around 159.50, and AUD/USD firmed near 0.7060.
Traders are now positioning ahead of the Eurozone’s preliminary Q2 GDP report and US retail sales data, which could influence Fed policy expectations.