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HomeLatestDollar Slips Lower as Investors Await Core PCE Release; Euro Strengthens
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Dollar Slips Lower as Investors Await Core PCE Release; Euro Strengthens

In early European trading on Tuesday, the U.S. dollar saw a slight decline amidst a modest increase in risk sentiment, yet remained within narrow trading ranges ahead of the release of pivotal inflation data.

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At 04:25 ET (08:25 GMT), the Dollar Index, gauging the greenback against a basket of six other major currencies, dipped by 0.2% to 104.410, retracing some of last week’s robust gains as traders resumed activity following holidays observed in the U.K. and the U.S.

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The dollar’s slip ahead of the core Personal Consumption Expenditures (PCE) price index report underscores the significance of this Federal Reserve-preferred measure of inflation.

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Market focus remains attuned to the trajectory of U.S. interest rates, with investors keenly awaiting clues regarding the timing and scale of expected rate adjustments this year.

Projections suggest the core PCE index is likely to maintain stability on a monthly basis. This anticipation comes amidst a backdrop of markets increasingly accepting the narrative of sustained elevated interest rates, following last week’s Fed minutes and cautious remarks from various policymakers.

Throughout the week, investors will have the opportunity to glean insights from several Federal Reserve speakers, including Governor Michelle Bowman, Cleveland Fed President Loretta Mester, Governor Lisa Cook, New York Fed President John Williams, and Atlanta Fed President Raphael Bostic.

In addition to the core PCE release, the economic calendar includes revised data on first-quarter economic growth slated for Thursday, and the Fed’s Beige Book report scheduled for Wednesday.

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