Dollar steadies ahead of U.S. growth, inflation data
The U.S. dollar steadied in early European trade Thursday near two-week highs, supported by rising yields and rising conviction the Federal Reserve will not cut interest rates anytime soon. A spate of stronger-than-expected economic data, hawkish comments from a number of Fed officials and a run of poorly received auctions have seen bond yields rise sharply, spurring a rush to the safest assets and boosting the dollar. Conviction is growing that the Fed will not cut interest rates any time soon, and traders are waiting for confirmation from Friday’s PCE price index data, the Fed’s preferred inflation gauge, that inflation remained sticky through April.
