- Weak PCE price index data and an unexpected decline in jobless claims provided support to the US dollar.
- This morning, the hawkish Ueda rate pushed the dollar to weekly lows just below 152.
- The pair is consolidating near the highs with everyone watching the NFP report.
The dollar reversal observed during Thursday’s European session found support around 152.00. The pair returned to levels close to 153.00 supported by persistent inflation and lower unemployment numbers.
The US PCE price index is growing at a rate of 2.1% per year, as widely expected. The basic reading, which is more critical from a monetary point of view, remained stable at 2.7% against expectations of 2.6%.
Moreover, the number of unemployed people in the US dropped in the week of October 25 to 216,000, compared to market expectations for an augment to 230,000. from the upwardly revised 228 thousand in the previous week (227,000 were initially reported).
In Japan, BOJ Governor Kazuo Ueda gave novel impetus to the yen today. The bank left interest rates unchanged, but Ueda maintained its commitment to normalizing monetary policy, suggesting a rate hike in December.
From a technical point of view, the pair is moving in a horizontal range, and investors are waiting for Friday’s NFP data. Immediate support at 151.65. Below, the next support is 150.60. The resistances are the current support at 152.77 and the October peak at 153.85.
