Forex Today: Can US PCE confirm rate cut in September?

The Dollar alternated between gains and losses amid further appreciation in the Japanese Yen and a decent pullback in US yields across the curve, while firmer than expected US data appears to have curtailed some rate cut bets in September.

Here’s what you need to know on Friday, July 26:

The USD Index (DXY) remained on the defensive in the low 104.00s, always keeping a close eye on developments around the Japanese Yen and expectations of rate cuts beyond the summer. On July 26, the USD Index (DXY) readings PCE will take center stage, followed by personal income, personal spending and the final Michigan Consumer Sentiment data.

EUR/USD has put aside two consecutive daily declines and climbed to two-day highs near 1.0870. The ECB will publish its survey of consumer inflation expectations on July 26.

GBP/USD remained lower for a third consecutive session following increased speculation of a BoE rate cut next week. The UK calendar will be empty on July 26.

Following fresh lows in the sub-152.00 zone, USD/JPY managed to reverse that early move and approach the 154.00 barrier towards the end of the NA session. Tokyo inflation figures along with final readings of the Coincident Index and the Leading Indicators Index will be released on July 26.

The AUD/USD pair extended its intense bearish move to the boundaries of the 0.6500 level for the first time since early May. There will be no data releases in Australia on July 26.

WTI prices added to Wednesday’s rally and regained the area beyond the $78.00 per barrel level.

Traders cashed in on some of the recent gains and prompted gold prices to retreat to multi-day lows around $2,360 per troy ounce. Meanwhile, silver sold to fresh two-month lows in the sub-$28.00 per ounce region.