Dollar to shrug off US Core PCE barring a major upside surprise – ING

The Dollar has continued to lose ground across the board. The focus will be on February’s PCE deflator, the Fed’s preferred measure of inflation. However, the greenback is unlikely to react to the figures unless the print surprises significantly to the upside, economists at ING report.

USD struggling to find support

“Barring a major upside surprise, we don’t expect a material impact on the Dollar from PCE data today.”

“As we have seen, higher chances of a May hike don’t automatically translate into a stronger Dollar in the current market environment.” 

“We could see some Dollar stabilisation after a week of losses, but the short-term bias remains negative for the greenback.”

See – US Core PCE: Banks Preview, inflation still too hot