The dollar index traded with mixed performance as traders braced for upcoming U.S. economic data. The market’s focus is primarily on indicators that could influence the Federal Reserve’s outlook on interest rates.

Key Data Releases to Watch

• Inflation Figures: Core inflation data will be scrutinized for signs of easing price pressures.
• Employment Data: Jobless claims and non-farm payrolls will provide insights into the strength of the labor market.
• GDP Growth: The latest GDP figures will offer a snapshot of the overall economic health.

Analysts suggest that stronger-than-expected data could bolster the dollar, as it might prompt the Fed to maintain its hawkish stance. Conversely, weaker data could weigh on the dollar, increasing expectations of a policy pivot.

Market Sentiment

Market sentiment remains cautious, with investors carefully weighing the potential impact of the data releases. The dollar’s performance in the coming days will likely be heavily influenced by these economic indicators.