The dollar index (DXY) fell by 0.17% on Thursday as a stock market rally diminished demand for the dollar. Concurrently, the May core PCE price index, the Federal Reserve’s preferred inflation gauge, rose by 3.4% year-on-year, aligning with expectations but signaling a stable economic outlook that may prevent monetary tightening.
Key economic indicators revealed robust U.S. economic health: initial jobless claims decreased by 12,000 to 215,000 (expected 225,000), and personal spending and income for May each rose by 0.7%, exceeding forecasts of 0.6% and 0.4%, respectively. Meanwhile, the revised Q1 GDP grew by 2.1%, surpassing the initial estimate of 1.6%.
In the Eurozone, the German GfK consumer confidence index rose to -29.2, below the anticipated -28.0, contributing to a 0.13% increase in EUR/USD as the euro gained ground against the weakened dollar. On the Japanese front, the yen experienced slight losses, with USD/JPY rising by 0.01%, amid concerns about the Bank of Japan’s slow policy normalization.
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