The dollar index kept its early gains, trading above the 103 mark on Thursday, after losing about 1% over the past three sessions as investors were digesting the latest data. On one hand, personal spending surged by 0.8%, the most since January surpassing market forecasts of 0.7% while core PCE prices rose by a modest 0.2% compared to the previous month and by 4.2% on a year-on-year basis. On the other hand, Q2 GDP growth was downwardly revised and ADP data showed private businesses in the US hired 177K workers in August 2023, the least in five months. Still, the traders see an 89% probability that the Fed will leave rates unchanged at its September meeting and are pricing in a 44% likelihood of a hike in November.
