US Dollar holds above the 104.00 barrier, investors await US PMI data
The US Dollar Index recovers above the 104.00 barrier during the early Asian trading hours on Friday. The prospect that the Federal Reserve might delay rate cuts amid high US inflation lifts the US Dollar Index. The DXY is trading at 104.13, gaining 0.01% on the day.
Dollar Index Demand chart
There are some upside risks for the Dollar today
Today, the ISM manufacturing index will be in focus. There is a risk that it hits the 50.0 mark (or above) for the first time since October 2022, which can reinforce expectations of an extra-resilient economic environment in 1Q.
Given the index has been in contraction for a very long time, downside surprises may not have the same impact as a rebound to 50+. So, there are some upside risks for the Dollar today, although data in the Eurozone can also play a role in price action before the weekend.
All in all, we stand by our call for DXY to end the week above 104.00.
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