The US Dollar partly retraces its steps after its decline on Tuesday.
Markets are starting to brush off the miss on US PMI data.
The US Dollar Index heads back to 106.00 ahead of US Durable Goods data.
The US Dollar (USD) is trying to recover on Wednesday after trading firmly in the red on Tuesday. The miss on the US Purchasing Managers Index (PMI) for both the Services and Manufacturing sectors triggered a sell-off which extended to Wednesday’s Asian trading session. With the start of the European session, the dust seems to settle and seem to be considering the data miss as a one-off. Going forward, the US Gross Domestic Product (GDP) data on Thursday and the US Personal Consumption Expenditures (PCE) Price Index release on Friday will drive the next moves for the US Dollar.
On the economic data front, Wednesday’s calendar is relatively light but some data could be moving markets and the DXY US Dollar Index again. Durable Goods Orders data are due to be released, and after the PMIs disappointment, more downbeat numbers could extend doubts over the US exceptionalism. Depending on how far data would undershoot or deteriorate, a June cut might even be back on the table again by next week.
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