. US Dollar Index Holds Firm Pre-ISM & Michigan

US Dollar Index Holds Firm Pre-ISM & Michigan

US Dollar Index Holds Firm Pre-ISM & Michigan

01 Mar 2024

The US Dollar is showing stability as it anticipates the release of ISM and Michigan data

  • The US Dollar is maintaining a stable position before the final data releases of the week.
  • The market is preparing for insights from six Federal Reserve speakers and the unveiling of the Monetary Policy report.
  • The US Dollar Index hovers around 104.00, lacking a clear directional move in either direction.

The US Dollar (USD) remains steady before the US Opening Bell, with markets preparing for the final economic data releases of the week. Reflecting on the week, it is evident that market participants are uncertain about their next moves. Despite the US Federal Reserve asserting its data-dependent approach, recent data suggests a potential case for an additional rate hike to manage second-round effects of inflation. Contrarily, comments from Fed speakers this week have focused on the timing and extent of interest-rate cuts by the Federal Reserve.

Economically, there are still key figures that might influence a shift in the US Dollar. Friday’s schedule includes the release of Manufacturing Purchasing Managers Index (PMI) data from both S&P Global and the Institute for Supply Management for February, along with the University of Michigan Consumer Sentiment and Inflation Expectations. Adding to this, insights from six Federal Reserve speakers and the unveiling of the Monetary Policy Report will offer additional guidance to the markets.

The Fed asks to ignore January inflation

This upcoming Friday is scheduled to commence around 14:45 GMT with the conclusive release of the S&P Global Manufacturing PMI for February. Anticipated expectations suggest a steady reading at 51.5.

At 15:00 GMT, the University of Michigan and the Institute for Supply Management (ISM) are scheduled to unveil their respective data sets.

Stocks are showing gains worldwide, with positive movements observed from Asia to US futures. Nasdaq futures, in particular, have reached a record high during the Asian trading session.

As per the CME Group’s FedWatch Tool, there is a 97% anticipation of the Federal Reserve opting for a pause in the March 20 meeting, with only a 3% likelihood of a rate cut.

The 10-year US Treasury Note, serving as the benchmark, is trading at approximately 4.27%, showing minimal fluctuations over the last three days.