The dollar index (DXY00) fell by 0.28% as a stock market rally decreased demand for the currency. Despite the losses, the dollar’s decline was moderated by stronger-than-expected US economic data, including a rise in weekly jobless claims to 200,000—better than estimates of 209,000—and a revision of Q3 GDP upward to 4.4%, exceeding the forecast of 4.3%.
In other economic indicators, November personal spending increased by 0.5%, meeting expectations, while personal income rose by 0.3%, below the anticipated 0.4%. The core PCE price index, a key inflation measure, rose 0.2% month-over-month and 2.8% year-over-year, aligning with forecasts.
Additionally, the Eurozone’s January consumer confidence index increased by 0.8 to -12.4, surpassing expectations of -13.0. Meanwhile, markets anticipate a 0% chance of a rate hike by the ECB at its next meeting on February 5.
