Dollar Falls on Slowing Personal Spending and PCE
The dollar traded weaker against the yen and euro amid US economic data showing weaker than expected consumer spending and rising inflation. Lower-than-expected consumer price gains in France and Spain also buoyed the common currency.
The Bloomberg Dollar Spot Index was down 0.1% at 3:08pm New York time.
The Core PCE Price Index, the Fed’s favored inflation measure, showed inflation rising 0.4% from January; Data also showed personal spending rose less than survey expectations.
USD/JPY fell 0.7% to 150.01.
Data showed the cost of living in Tokyo rose more than anticipated, keeping the Bank of Japan on track for further interest rate hikes.
EUR/USD rose 0.2% to 1.0824.
One-year risk reversals rose to 22bps, the highest since April 2021.
Inflation in France and Spain undershot expectations, supporting calls for more interest-rate cuts by the European Central Bank.
Money markets price 60 basis points of easing by year-end in total.
GBP/USD fell nearly 0.1% to 1.2938; cable rose 0.1% on a weekly basis.
UK retail sales have risen strongly since the start of 2025, adding to evidence that the UK economy is starting to shake off the stagnation that has dogged the Labour government since it came to power last summer.
Source: Bloomberg
