Forex Today: US Dollar stays on the back foot ahead of PCE

Agustin Wazne FXStreet

Here is what you need to know for Wednesday, August 26:

The US Dollar Index (DXY) is hovering below the 99.00 mark as traders squared positions ahead of a heavy Wednesday data slate and Federal Reserve (Fed) Chair Kevin Warsh's Jackson Hole address on Friday. The move was modest, keeping the Greenback near recent lows rather than extending, with the Treasury's bond-buyback plans still weighing on the currency.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.09%	-0.11%	0.06%	-0.09%	-0.11%	-0.23%	-0.06%
EUR	0.09%		-0.01%	0.15%	-0.01%	-0.00%	-0.16%	0.03%
GBP	0.11%	0.00%		0.17%	0.00%	0.01%	-0.14%	0.05%
JPY	-0.06%	-0.15%	-0.17%		-0.17%	-0.18%	-0.32%	-0.13%
CAD	0.09%	0.00%	-0.01%	0.17%		-0.02%	-0.15%	0.04%
AUD	0.11%	0.00%	-0.01%	0.18%	0.02%		-0.13%	0.03%
NZD	0.23%	0.16%	0.14%	0.32%	0.15%	0.13%		0.19%
CHF	0.06%	-0.03%	-0.05%	0.13%	-0.04%	-0.03%	-0.19%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

EUR/USD clings to gains near 1.1675, holding firm after upbeat German data, with second-quarter Gross Domestic Product (GDP) and the IFO business surveys both beating forecasts.

GBP/USD stays firm near a six-month high, holding just below the 1.3650 mark, underpinned by sticky United Kingdom (UK) inflation and stronger business surveys.

USD/JPY edges up, holding north of the 159.00 barrier as the Yen drifts on the back foot.

AUD/USD steadies in the low-0.7100s, treading water ahead of Australian inflation data after the hawkish Reserve Bank of Australia (RBA) Minutes.

Gold has lost its grip, easing toward $4,650 per troy ounce as the Middle East risk premium fades.

West Texas Intermediate (WTI) Oil extends its slide, dropping more than 3% toward $82.00 per barrel after the US declared the Strait of Hormuz cleared of mines.

The Asian session leads with Australia's July Consumer Price Index (CPI). Europe brings Switzerland's ZEW Survey Expectations for August, followed by a speech from European Central Bank (ECB) board member Piero Cipollone.

The US session is the heavyweight with a cluster of releases. The second estimate of Q2 GDP is expected to confirm annualized growth around 1.5%, alongside Durable Goods Orders, Personal Income and Personal Spending. The main draw is the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation gauge, with the core annual rate expected to hold near 3.3%.

Barring a data surprise, the Dollar looks likely to keep drifting into Friday, when Fed Chair Warsh takes the stage at Jackson Hole for the week's main event.

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

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