US Dollar steady ahead of US PPI and Michigan release
- The US Dollar trades flat on Friday, set to close the week with gains.
- Traders are gearing up for US PPI while Fed speakers keep reiterating rate cuts are to come.
- The US Dollar Index trades above 102.50 and struggles to break above 103.00.
The US Dollar (USD) stabilizes on Friday after a very solid rally this week, with the rate differential becoming the main driver. The question going forward for next week will be if this upward move in US Treasury rates was a bit overdone, seeing the US Consumer Price Index (CPI) only marginally ticked up in September compared to the previous month. This contradicts what several Federal Reserve (Fed) officials have said this week, that US rates will go lower with more interest rate cuts from the Fed confirmed.
The economic calendar is facing this week's last pieces of the puzzle. The US Producer Price Index (PPI) release for September will reveal whether the uptick in inflation is also noticeable on the production side. The last data point will be the preliminary reading from the University of Michigan on Consumer Sentiment and inflation expectations for October.
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