US stocks and dollar strengthen on Fed and strong economic data
Strengthening stocks and the dollar: U.S. stocks rose along with the dollar, driven in part by positive U.S. economic data and expectations of an interest rate cut by the Federal Reserve (Fed).
Strong economic data: U.S. retail sales rose in August and factory output rebounded from the bottom, easing fears of an economic slowdown.
Expected rate cuts: The Fed is expected to cut interest rates by 25 basis points. Some speculation has even suggested the possibility of a more aggressive cut of up to half a percentage point.
Analyst Comment: Peter Cardillo of Spartan Capital Securities said strong economic data points to a healthy U.S. economy and he expects further clues on future Fed policy.
The pair is holding nicely around the upper boundary of the sideways trend so far. When these levels have been around early in the year or in 2023, the price has always fallen quickly. So far it looks like it wants to break out and continue up.