US Dollar gives up gains of robust GDP and labor market figures
The US Dollar (USD) initially surged but then stabilized after positive data on Q4 GDP and Initial Jobless Claims was offset by weaker-than-expected Chicago PMI, while US Treasury yields remained mixed, limiting the upside for the USD. The US economy appears steady, with the Federal Reserve treading a cautious path and a rate cut in June appearing less likely. The week's focus will be on the Personal Consumption Expenditures (PCE) data, which will dictate the pace of the USD in the short term. Despite short-term bearish undertones, the DXY bulls have a firmer grip in the long run.