Dollar Steadies Ahead of PCE Inflation Data — TradingView News
The dollar index steadied around 103.9 on Thursday after facing heightened volatility in the previous session, as investors stayed on the sidelines ahead of a key US inflation reading that could influence the Federal Reserve’s monetary policy stance.
Thursday’s report on the personal consumption expenditures price index, the Fed’s preferred inflation gauge, is forecasted to rise 0.4% in January after a 0.2% gain in December.
A stronger-than-expected PCE deflator could reduce bets for a rate cut in the first half even further, potentially lifting the dollar.
Meanwhile, data on Wednesday showed that the US economy grew at an annualized rate of 3.2% in Q4 2023, slightly lower than the initial estimate of 3.3%.
The dollar held steady against most major currencies, but weakened versus the yen after a Bank of Japan official called for talks on a potential exit from ultra-easy monetary policy.
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