US DOLLAR FLAT AS TRADERS KEEP POWDER DRY AHEAD OF PCE INFLATION DATA
The US Dollar eases on Friday after some hawkish ECB comments weighed on the DXY.
Traders’ eyes are on the US PCE Price Index data on Friday.
The US Dollar Index popped above 101.00, holding above it.
The US Dollar (USD) trades flat to a touch softer on Friday after comments from European Central Bank Executive Board member Isabel Schnabel left European trading with a hawkish undertone. Although recent figures in the Eurozone might be pointing to disinflation, ECB’s Schnabel said that the scenario of a few consecutive rate cuts is not on the table as the ECB needs to remain cautious. This gave some oomph to the Euro (EUR) against the US Dollar (USD). Still, the US Dollar is trading only slightly softer against several other currencies as traders keep their powder dry ahead of the last bit of important economic data this Friday.
This main economic data point will be the core Personal Consumption Expenditures (PCE) Price Index, the favourite inflation gauge of the US Federal Reserve (Fed). With most analysts expecting another soft number, the PCE component under the US Gross Domestic Product release from Thursday was downwardly revised, suggesting that price pressures in the second quarter were milder than previously thought.
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