The index gives away part of Thursday’s gains and returns to 104.70.
The rally in US yields take a breather so far on Friday.
ISM Non-Manufacturing, Services PMI, Fedspeak next on tap in the docket.
The USD Index (DXY), which tracks the greenback vs. a basket of its main rivals, comes under some selling pressure and returns to the sub-105.00 area on Friday.
USD Index now looks at data
The index maintains the weekly choppiness well in place at the end of the week, this time below the 105.00 region and amidst some impasse in the ongoing rally in US yields.
Indeed, the dollar appears offered after investors seem to have already digested the recent bout of hawkishness from some Fed speakers while keep favouring a 25 bps rate hike at the March 22 meeting.
On the latter, the probability of a 50 bps rate raise stays around 30% (from 0% a month ago) according to CME Group’s FedWatch Tool.
In the US data space, the main focus will be on the ISM Non-Manufacturing seconded by the final S&P Global Services PMI along with a slew of Fed speakers: Dallas Fed L.Logan (voter, centrist), Atlanta Fed R.Bostic (2024 voter, hawk), FOMC M.Bowman (permanent voter, centrist) and Richmond Fed T.Barkin (2024 voter, centrist).
