The dollar index (DXY00) on Friday rose by +0.38%. The dollar Friday rose moderately on some month-end and quarter-end buying. However, dollar gains were limited after Friday’s economic news showed U.S. price pressures receding after the Feb core PCE deflator rose less than expected, which is dovish for Fed policy.
Friday’s U.S. economic data was mixed for the dollar. On the bullish side, Feb personal income rose +0.3% m/m, stronger than expectations of +0.2% m/m. Also, the Mar MNI Chicago PMI unexpectedly rose +0.2 to 43.8, stronger than expectations of a decline to 43.0. Conversely, the Feb PCE core deflator eased to 4.6% y/y from 4.7% y/y in Jan, the slowest pace of increase in 16 months. Also, Feb personal spending rose +0.2% m/m, weaker than expectations of +0.3% m/m. In addition, the University of Michigan U.S. Mar consumer sentiment was revised lower to 62.0 from 63.4, weaker than expectations of 63.3.
