May PCE data showed inflation rising to 4.1% YoY, aligning with expectations, while US GDP growth was revised upward to 2.1%.
The US Dollar Index (DXY) pulled back toward 101.40 on Thursday after May’s Personal Consumption Expenditures (PCE) Price Index rose to 4.1% year-over-year, matching forecasts. Core PCE increased to 3.4% YoY, reinforcing sticky inflation trends.
US economic data also showed resilience, with first-quarter GDP revised higher to an annualized 2.1% from 1.6%. Initial jobless claims fell to 215K, signaling a strong labor market. The data followed April’s PCE print of 3.8% and a prior GDP estimate of 1.6%.
EUR/USD edged up to 1.1370, while GBP/USD climbed toward 1.3200. USD/JPY remained near 161.80, a level watched for potential intervention. Markets await Tokyo’s June CPI data for further BoJ policy cues.