U.S. Dollar Holds Steady as PCE Inflation Data and Nvidia Earnings Take Center Stage

TLDR

• The U.S. Dollar Index held near 99.00 ahead of key PCE inflation data and the Jackson Hole symposium
• The Australian dollar hit its highest level since early June after July CPI came in hotter than expected at 3.5%
• The Canadian dollar weakened after U.S.-Canada trade talks collapsed and both sides imposed retaliatory tariffs
• The Japanese yen steadied near 159.00 with markets watching for a possible Bank of Japan rate hike in September
• Gold pulled back from a three-month high near $4,700 and Brent crude fell over 2% on easing Middle East tensions

The U.S. dollar stayed in a tight range on Wednesday as traders waited for the Personal Consumption Expenditures price index, the Federal Reserve’s preferred inflation measure. The U.S. Dollar Index hovered near 99.00, close to last week’s three-month low.

Markets expect core PCE to rise 0.2% month-on-month, steady with where the annual rate has been sitting. Analysts at ING said a reading in line with forecasts should keep the dollar broadly stable, with limited room to move higher.

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