Check out the latest on the US Dollar: US Dollar back under pressure on last trading day of 2023
- After a strong recovery, the US Dollar is trading flat at the close of the US session on Thursday.
- Equity markets are set to finish the year on a high note.Â
- The US Dollar Index has popped back above 101, but is flirting with a final close below it.Â
The US Dollar (USD) is holding steady on this last Friday of the year and the final trading day of 2023. Despite some ups and downs, the Greenback has only lost about 3% Year-To-Date on the US Dollar Index (DXY) chart since January. Looking ahead to 2024, the big question is whether markets have been too quick to price in rate cuts for the US Federal Reserve, or if the Fed has made a policy error.
Economic traders can keep an eye out for the Chicago Purchase Managers Index (PMI) being released this Friday, which could make a difference in the market. The Jobless Claims numbers from Thursday already had an impact on the DXY. If the Friday’s PMI numbers exceed expectations, the Greenback could recover some of its losses from earlier in the week.
Market Movers: Geopolitics and rate cuts for 2024
- The last data point for 2023, the Chicago Purchase Managers Index, is expected to decline from 55.8 to 51. A drop below 50 would be negative for the US Dollar, while a beat of expectations or a print above the previous figure might trigger a strong US Dollar rally.
- On the geopolitical front, Russia has launched a missile offensive against Ukraine, causing casualties to rise.
- Former US President Donald Trump will be on the primary ballot in Colorado, but is barred in Maine for the March Primaries.
- Global equities are pushing for those last percentage points of gains, with impressive performances in Japan and Germany, but a letdown in China.
