27 Feb 2015
USD index on track for eight consecutive monthly gain
FXStreet (Mumbai) - The US dollar index suffered losses earlier today, despite which it is still on track for its eight consecutive monthly gain due to strong labor market performance and speculation of an interest rate hike in 2015.
The dollar index could mark its biggest rally since the 1971. At the moment the index is trading 0.22% lower at 95.15. However, an upbeat US GDP report later today could ensure that the index closes well above the previous week’s closing level of 95.00, thereby posting eighth consecutive monthly gains.
Moreover, the index recovered sharply from the low of 94.07 in the previous after the data in the US showed the core consumer price index rose 0.2%, beating the estimate of 0.1%. An upbeat durable goods data and hawkish comments from the Fed policymakers also helped the Greenback rally across the board.
The gains could be extended today if the second estimate of the Q4 US GDP prints higher than the consensus estimate of 2.0%. The preliminary estimate had shown Q4 GDP at 2.6%.
The dollar index could mark its biggest rally since the 1971. At the moment the index is trading 0.22% lower at 95.15. However, an upbeat US GDP report later today could ensure that the index closes well above the previous week’s closing level of 95.00, thereby posting eighth consecutive monthly gains.
Moreover, the index recovered sharply from the low of 94.07 in the previous after the data in the US showed the core consumer price index rose 0.2%, beating the estimate of 0.1%. An upbeat durable goods data and hawkish comments from the Fed policymakers also helped the Greenback rally across the board.
The gains could be extended today if the second estimate of the Q4 US GDP prints higher than the consensus estimate of 2.0%. The preliminary estimate had shown Q4 GDP at 2.6%.