Capital.com analyst Daniela Hathorn said upcoming US data will determine whether
the dollar rally has further room. If PCE and labor-market prints continue to
support a higher-for-longer rates narrative, the dollar should remain supported;
if price pressures ease more quickly, markets may start to question whether
current rate expectations are too aggressive. PCE (the Fed’s preferred inflation
gauge) and initial jobless claims are due Thursday; nonfarm payrolls are due
July 2.