On Monday (Oct 31), the sub-session, rose sharply, temporarily traded at 110.88, or 0.18%.
Data on Thursday showed consumer spending rose more than expected in September, while core inflationary pressures remained elevated, keeping the prospect of a further 75 basis point rate rise next week on track.
“The bottom line is that if the Fed had not shifted to a more forward-looking stance, the outcome would have been more restrictive than needed,” said Admir Kolaj, an economist at TD Securities.
Juan Perez, head of trading at Monex USA, said: “Last week’s data adds credence to Powell’s comments that he has been insisting that the economy is strong enough to withstand a rate hike.
A strong economy brings confidence in the economy, but you have to fight inflation with high, which only makes it stronger.”
Friday’s rise in the U.S. index was capped below 111.10, while a fall above 110.25 was supported, suggesting the dollar could sustain its upward trend after falling.
If today’s drop above 110.30 is supported, the upside target will point to 111.15-111.50.
