Mixed markets with a weak tone USD – DBS

The dollar index (DXY) slipped 0.4% to 100.56 overnight, holding below 101 for the ninth session, notes DBS FX analyst Philip Wee.

JPY challenges USD weakly this week

“In the first four days of the week, excluding JPY (-0.7%), currencies in the DXY basket appreciated, led by CAD (+0.8%), GBP (+0.7%), CHF ( +0.5% ), and EUR (+0.1%). US stock indexes rose on better-than-expected US data.”

“The US Commerce Department updated its GDP estimates, which mentioned faster growth in 2021, 2022 and early 2023. It also deleted the technical recession in 1H22; the quarterly contraction in 2Q22 was revised to an expansion.”

“The Dow, S&P 500 and Nasdaq Composite rose 0.6%, 0.4% and 0.6%, respectively. The S&P closed at a new high of 5745.”