US Dollar steadies as markets look for fresh clues in the US PCE inflation release

LONDON (March 28) The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, is currently flat to slightly higher near 104.50 at the time of writing on Friday. Traders are not really looking at the Greenback but rather at an exodus from Equities and Cryptocurrencies into the precious metals’ market, where Gold has hit another all-time high this Friday at $3,086. The reciprocal tariff deadline is approaching fast, April 2, and clearly has struck a nerve amongst traders and market participants. 

On the economic data front, all eyes are on the Federal Reserve (Fed) preferred inflation gauge, the US Personal Consumption Expenditures (PCE) data for February. The core and headline monthly PCE readings are both expected to grow steadily by 0.3%.

Daily digest market movers: All eyes in PCE for fresh clues on inflation

• At 12:30 GMT, the US Personal Consumption Expenditures data for February is due to be released:
  • The monthly headline PCE is
  • set to come in at 0.3%, unchanged from the previous 0.3%. The yearly gauge is expected to remain stable at 2.5%.
  • The monthly core PCE should grow steadily by 0.3%. The yearly core PCE should tick up to 2.7% from 2.6%.
  • At the same time, the US Personal Income month-on-month for February is expected to ease to 0.4% from 0.9% previously. The US Personal Spending for February should tick up to 0.5%, coming from the previous contraction of 0.2%.
• At 14:00 GMT, the University of Michigan Consumer Sentiment Index reading for March is expected to remain stable at 57.9. The 5-year Consumer Inflation Expectations are set to remain unchanged at 3.9%.
• At 16:15 GMT, Federal Reserve Bank Vice Chair for Supervision Michael Barr will speak on Banking Policy at the 2025 Banking Institute in Charlotte, N.C.
• At 19:30 GMT, Federal Reserve Bank of Atlanta President Raphael Bostic will moderate a policy panel at the third annual Georgia Tech-Atlanta Fed Household Finance Conference at the Atlanta Fed, Atlanta, Georgia.
• Equities are diving lower with losses between 0.5% to 2% crossing from Asia over Europe and into US futures. 
• According to the CME Fedwatch Tool, the probability of interest rates remaining at the current range of 4.25%-4.50% in May’s meeting is 87.1%. For June’s meeting, the odds for borrowing costs being lower stand at 65.5%.
• The US 10-year yield trades around 4.33%, looking for direction with some small safe haven inflow. 

FXStreet