The US dollar rose in European trade on Friday against a basket of major rivals, resuming gains and almost touching eight-week highs, while on track for the second quarterly profit in a row.
The gains come ahead of important US personal spending data, which is the Federal Reserve’s favorite gauge for inflation.
The Price
The dollar index rose 0.2% to 106.12, with a session-low at 105.83.
The index closed down 0.1%, the first loss in three days on profit-taking away from eight-week highs at 106.13.
Quarterly Trades
The US dollar index is on track for a 1.5% profit this quarter.
Strong Demand
The dollar is buoyed by strong haven demand as investors dump the euro amid political concerns in Europe, especially the upcoming French elections.
The Federal Reserve also underpinned the dollar by maintaining interest rates unchanged for the seventh meeting in a row, while central banks in Europe, Canada, and Switzerland started to cut rates recently.
US Rates
The markets are pricing in a 64% chance of a Fed September interest rate cut, and a 76% chance of such a cut in November.
US Data
The developments came ahead of important US personal spending data for May, which is considered the Fed’s favorite gauge for inflation.
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