US Dollar Holds Near Two-Month Highs Over Upbeat GDP Data
The US dollar continues to hold steady close to a two-month high at the start of a fresh trading week, buoyed by a stronger than expected US GDP for Q2 2019. At the time of writing, the US dollar index DXY is trading at 97.98.
The dollar had been trading under pressure these past few weeks over increased concerns of the Fed cutting interest rates at its upcoming meeting. However, the rate cut sentiments have reduced slightly as markets now see this move as a preemptive one, aimed at protecting the US economy from the effects of trade tensions and global economic slowdown.
Data released on Friday revealed that US GDP had grown by 2.1% YoY in Q2 2019, coming in higher than the expected 1.8% growth. Strong consumer spending supported the economy which was slowing down over reducing exports and lower inventory builds.
This week, markets are all set to focus on the Fed meeting which is scheduled to take place on July 30-31. The Fed’s interest rate decision should offer more clarity and cause some movement in the US dollar in the coming days.
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