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Dollar holds near 99.00 as investors await core PCE and Nvidia earnings

Markets look for US core PCE to rise 0.2% month on month, while DXY is trading around 99.00 after small losses and ING expects only limited near term dollar upside.

Reported · Written up by our desk · Major Pairs

Major currency pairs traded in tight weekly ranges on Wednesday, with investors positioning ahead of key US data and after Nvidia earnings later in the session, according to FXStreet.

The US Dollar Index held steady around 99.00 after posting small losses on Tuesday. Investors are focused on the BEA’s second estimate of second-quarter GDP growth and the PCE Price Index, including the core PCE inflation measure for July, where expectations call for a 0.2% monthly increase after June’s 0.1% reading, and an annual rate steady at 3.3%. ING said a benign core PCE print could keep the dollar relatively steady, even if the calmer market tone may still lead to mild dollar losses, with 99.00/10 seen as capping the upside for DXY.

In the broader market mix, a joint proposal from Iran and Oman on a temporary shipping lane in the Strait of Hormuz was accompanied by an Iranian clarification that the critical waterway will remain closed until Washington returns to commitments under a memorandum of understanding. Elsewhere, oil prices edged lower after a more than 4% drop on Tuesday, with WTI last seen near $79.50, down about 1.5% on the day. Canada also announced plans to impose tariffs as high as 50% on a range of US goods totaling nearly $20 billion.

Latest closeWTI crude $82.40 ▲1.4%|Dollar index 99.64 ▼0.3%

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