The dollar index (DXY00) on Wednesday rose by +0.13% and posted a 1-week high. Weakness in stocks on Wednesday has boosted liquidity demand for the dollar. Also, hawkish comments Wednesday from Fed Presidents Williams, Bostic, and Collins undercut precious metals when they said they favored waiting before cutting interest rates. Wednesday’s U.S. Q4 GDP report was mixed for the dollar after Q4 GDP was revised lower, but Q4 personal consumption and the Q4 core PCE price index were revised upward. A decline in T-note yields Wednesday limited the upside in the dollar.
Wednesday’s U.S. Q4 GDP report was mixed for the dollar. On the positive side, Q4 personal consumption was unexpectedly revised upward to +3.0% from +2.8%, stronger than expectations of +2.7%. Also, the Q4 core PCE price index was revised upward to +2.1% from +2.0%. On the negative side, Q4 GDP was revised downward by -0.1 to +3.2% (q/q annualized) from the previously reported +3.3%.
