The Dollar Index (DXY) depreciated by 0.4% to 100.56 overnight, holding below 101 for the ninth session, DBS’ FX analyst Philip Wee notes.

JPY challenges weakish USD this week

“In the first four days of the week, except for the JPY (-0.7%), the currencies in the DXY basket appreciated, led by the CAD ( 0.8%), GBP ( 0.7%), CHF ( 0.5%), and EUR ( 0.1%). US stock indices rallied on better-than-expected US data.”

“The US Commerce Department updated its GDP estimates, which cited faster growth in 2021, 2022, and early 2023. It also erased the technical recession in 1H22; the quarterly contraction in 2Q22 was revised to an expansion.”

“The Dow, S&P 500, and Nasdaq Composite indices rose by 0.6%, 0.4%, and 0.6%, respectively. S&P closed at a new record high of 5745.”