Dollar Steady Ahead of PCE Release
The U.S. dollar was steady on Friday ahead of key inflation data that could guide the Federal Reserve in its future monetary policy, while strength in the British consumer helped support the pound.
At 5:10 AM ET (09:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was up slightly at 104.037, heading for a small weekly gain.
The U.S. currency has mostly traded steady this week, but is headed for a quarterly loss of about 4% as concerns about the impact of tariffs on U.S. economic activity, as well as inflation, have weighed.
Attention will shift later in the session as the U.S. gets February figures for the Federal Reserve’s preferred PCE inflation gauge.
The personal consumption expenditures price index for February is expected to match the previous month’s 0.3% monthly increase.
Meanwhile, the so-called “core” measure is seen rising slightly on an annualized basis and matching January’s month-over-month pace.
The figures come as concerns grow that Trump’s aggressive trade agenda could reignite inflationary pressures.
“Wednesday’s auto tariff announcement did not provide a material boost to the dollar, and we look forward to seeing how the dollar trades today, when we should get some somewhat positive dollar data,” analysts at NG said in a note.
“Currently, the market is pricing in a 17bp rate cut in June – something that could be expected if inflation remains stagnant.”
Source: Investing.com
