Here is what you need to know on Wednesday, August 26: Major currency pairs continue to trade in relatively tight weekly ranges early Wednesday as investors gear up for key events.
Later in the day, the US Bureau of Economic Analysis (BEA) will publish its second estimate for the the second-quarter Gross Domestic Product (GDP) growth and Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of inflation, data for July
Moreover, Nvidia (NVDA) will release its earnings report after Wall Street’s closing bell. US Dollar Price This week The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Canadian Dollar.
The US Dollar (USD) Index holds steady at around 99.00 after posting small losses on Tuesday. Markets expect the core PCE Price Index to rise 0.2% on a monthly basis following the 0.1% increase recorded in June and see the annual rate holding steady at 3.3%. Dollar seen steady as benign PCE caps DXY topside Analysts at ING expect the Dollar to remain broadly stable around the upcoming US core PCE release, arguing that “a benign US core PCE print at 0.2% month-on-month should keep the Dollar relatively steady today.” They note that the calmer backdrop in markets could still translate into “some mild dollar losses,” with “99.00/10” likely to “cap the topside for DXY.” In this environment, ING continues to “favour a drift back to the recent lows at 98.60,” suggesting limited upside for the Dollar in the near term.