Forexsudha - Smart Mentor
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US Dollar Gains Despite Lower Yields ahead of Core PCE Data. What Now for DXY?
The U.S. dollar, as measured by the DXY index, jumped on Thursday, rising about 0.8% 110.58, boosted by a steep drop in the euro following the European Central Bank’s monetary policy announcement. For context, the ECB raised interest rates by 75 basis points to 1.50%, in line with expectations, but failed to embrace a hawkish stance amid mounting recession risks. Today's moves in the FX market came despite a sharp drop in U.S. Treasury yields seen across the curve in the wake of the release of U.S. gross domestic product data. Although third-quarter GDP surprised to the upside, growing at an annualized rate of 2.6% ... (full story)