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US DOLLAR CONSOLIDATES AHEAD OF US PCE RELEASE

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  • The US Dollar trades in the green across the board, although with minor gains. 
  • All eyes are on the last data point for this week, the PCE inflation gauge. 
  • The US Dollar Index consolidates and pops back in September’s range.  

The US Dollar (USD) trades flat to marginally higher on Friday, with traders looking forward to the release of the Personal Consumption Expenditures (PCE) Price Index for August. The PCE is the Federal Reserve‘s (Fed) preferred inflation gauge in order to determine how their policy rate impacts inflation. With the data-driven decision-making approach for the upcoming policy rate decision in November, the PCE reading can and could be market-moving in case it prints out of consensus. 

On the economic data front, looking back to Thursday, it was a very disappointing day with no Fed comment or data point being able to move the needle substantially for the DXY. With only one trading day left, it will either be the PCE number or the University of Michigan Consumer Sentiment reading that might stir up things. 


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