Market Insight: Any Decline in the Dollar Likely to Be Temporary

Francesco Pesole from ING stated that the dollar is expected to continue its upward trend in the coming days, and any decline is likely to be temporary. The S&P Global composite purchasing managers' index for U.S. services and manufacturing activities showed a surprising acceleration, contrasting with weak Eurozone data. "The growth divergence with the struggling Eurozone remains a positive theme for the dollar," Pesole noted, highlighting the dollar's rise due to the likelihood of Republican candidate Donald Trump winning the U.S. presidential elections. Pesole added, "The loss of momentum in yesterday's dollar rally doesn’t appear to signal the start of a broader trend." The DXY dollar index held steady at 104.093.