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Dollar hovers under 99 as traders brace for key PCE data
EUR/USD holds near 1.1675 after upbeat German releases, while GBP/USD stays near a six-month high just below 1.3650.
The US Dollar Index (DXY) is hovering below 99.00 as traders trim positions ahead of a busy Wednesday data calendar and a Federal Reserve Chair Kevin Warsh Jackson Hole address on Friday, according to FXStreet. The dollar’s move has been modest, keeping the Greenback close to recent lows rather than extending further.
FXStreet notes that Treasury bond-buyback plans are still weighing on the currency. Against major peers, the euro is clinging to gains near 1.1675 after stronger-than-expected German second-quarter GDP and IFO business survey results, while GBP/USD holds just below 1.3650, supported by sticky UK inflation and firmer business surveys.
In Japan, USD/JPY is edging up and staying above 159.00 as the yen drifts on the back foot, while AUD/USD is steady in the low-0.7100s ahead of Australia’s inflation data and the Reserve Bank of Australia (RBA) minutes.
In commodities and expectations for the US session, FXStreet says the core PCE annual rate is expected to hold near 3.3% and the second estimate of Q2 GDP is expected to confirm annualized growth around 1.5%, with the PCE Price Index framed as the main driver for dollar direction into Friday.
The dollar setup comes alongside other market moves, with gold easing toward $4,650 per troy ounce as a Middle East risk premium fades and WTI oil falling more than 3% toward $82.00 per barrel after the US said the Strait of Hormuz is clear of mines.
Latest closeGold $4,432.00 ▲1.6%|WTI crude $82.40 ▲1.4%|USD/JPY 159.31 ▼0.1%