1407 GMT – Recent U.S. data have pointed to a resilient economy, including recent inflation figures for U.S. personal consumption expenditures, which could lead to a renewed rise in the the U.S. dollar and yields, says Rania Gule, market analyst at XS.com. With Federal Reserve officials not ruling out further interest-rate hikes, the DXY dollar index “has maintained a strong trading position since yesterday,” she says. “U.S. data and fundamentals may prevent the index from reaching new lows in the coming weeks” and could mark the beginning of a new, moderately strong bullish trend in the short and medium term, she says. The DXY index rises 0.1% at 103.570. (emese.bartha@wsj.com)

Euro Reverses Clear Upward Trend After Weak Inflation Data

0827 GMT – Weaker-than-expected inflation data from both the eurozone and individual eurozone countries this week have caused the euro to reverse a clear upward trend over the past month, says Hartmut Preiss, analyst at DZ Bank Research. “To the detriment of the euro, this [the weaker inflation data] has reinforced the market’s expectations of key interest rate cuts,” he says in a note. Money market forwards are pricing a first eurozone interest-rate cut in April, according to Refinitiv data. EUR/USD edges up 0.1% to 1.0901 on Friday, still well below a 3.5-month high of 1.1019 hit on Wednesday. The U.S. ISM business manufacturing purchasing manager index due at 1500 GMT will be the next key data to watch, the analyst says. (emese.bartha@wsj.com)

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