• The US Dollar Index trades back and forth around 104.30 with US Q2 GDP in focus.
• Market sentiment remains risk averse amid uncertainty over US presidential elections.
• The US core PCE will indicate whether market speculation for Fed rate cuts in September is appropriate.

The US Dollar Index (DXY) trades in a tight range near 104.30 in Thursday’s European session. The US Dollar (USD) stays quiet as investors await the United States (US) Q2 flash Gross Domestic Product (GDP) data, which will be published at 12:30 GMT. The GDP data will indicate the current status of the economy’s health.

According to the estimates, the US economy expanded at a faster pace of 2% from the former reading of 1.4%, on an annualized basis, which is above Fed’s forecast of 1.8% non-inflationary growth. Investors will also focus on the GDP Price Index, which will indicate a change in the prices of goods and services produced. The GDP Price Index is estimated to have decelerated to 2.6% from the prior release of 3.1%. This would diminish fears of inflation remaining persistent.

Alongwith GDP numbers, investors will also focus on the US Durable Goods Orders for June. New Orders for Durable Goods is expected to have increased by 0.3% from 0.1% in May.