USD Drops Following Release of PCE Data

Key Takeaways:

💲 Dollar dipped after PCE data
📉 Inflation was in line with economist expectations in January
📈 PCE price index rose by 0.3% in the month
💹 Core PCE price index gained 0.4%
📊 Dollar index was last at 103.89
🌐 Euro was at $1.083400
💴 Greenback fell to 149.98 yen
📉 Federal Reserve’s preferred inflation measure at 2.8% in January, down from 2.9% in December
📉 Core PCE rose by 0.4% in January compared to 0.2% in the prior month
📊 Initial jobless claims were higher than the previous week and market forecasts
📈 US Dollar Index currently supported by the longer-dated, 200-day simple moving average
📉 Break below key levels could see US Dollar at 103.00
📉 Fed President Powell suggests policy rate may have peaked

The US Dollar experienced fluctuations following the release of Personal Consumption Expenditures (PCE) data.
Inflation in January was in line with economist expectations.
The PCE price index rose by 0.3% in the month, while the core PCE price index gained 0.4%.

The Federal Reserve’s preferred inflation measure decreased to 2.8% in January from 2.9% in December.
Fed President Powell hinted at a potential peak in the policy rate.
The US Dollar Index is currently supported by the 200-day moving average, but a break below key levels could lead to a decrease.

Initial jobless claims were higher than anticipated by both the previous week and market forecasts.
The Euro stood at $1.083400, while the Greenback fell to 149.98 yen.
A potential trend reversal in the U.S. housing market has been reflected in house sales data.

Traders are advised to keep an eye on the Federal Reserve meeting minutes and interest rate path for further insights into market movements.
The USDZAR consolidation period is expected to come to an end, potentially impacting exchange rates.
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