The dollar index (DXY00) is down by -0.17% today. US economic news today showing weaker-than-expected inflation readings on Aug core PCE price index and the Q2 core PCE price index eases the chance of a Fed rate hike next month and is weighing on the dollar. Fed rate hike chances for the October FOMC meeting dropped to 35% today from 52% on Tuesday.
Dollar losses are limited today on signs of strength in the US economy after Q2 GDP was revised higher, and the Sep ADP employment change and Sep MNI Chicago PMI rose more than expected. Also, Aug personal spending rose the most in 5 months. In addition, today’s +1% increase in WTI crude oil raises inflation expectations that could prompt the Fed to tighten monetary policy, a supportive factor for the dollar.
