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USD RISES AGAINST A WEAKER EURO – DBS

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The DXY Index appreciated a second day by 0.28% to 101.38 overnight, DBS Senior FX Strategist Philip Wee notes.

ECB and FOMC meetings weigh on the EUR

“The Greenback’s initial boost came from a weaker Euro (EUR) on negative monthly inflation readings for Germany’s regions in August and later from resilient US consumer spending that lifted the US Treasury 10Y yield by 2.7 bps to 3.86%.”

“The US Bureau of Economic Analysis revised 2Q24 GDP growth to an annualized 3.0% QoQ saar vs. the advance estimate of 2.8% a month ago, and personal consumption expenditure growth to 2.9% from 2.3% previously.”

“EUR/USD depreciated by 0.4% to 1.1077 from markets increasing odds for a 25 bps rate cut at the European Central Bank meeting on September 12 and reducing bets for a 50 bps cut at the FOMC meeting on September 18.”



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