The softer inflation data weighed on short-term dollar sentiment, as traders adjusted positions ahead of several key US economic releases this week. The Flash Manufacturing PMI printed at 52.2, while the Flash Services PMI surprised to the upside at 55.2, suggesting underlying economic resilience despite slower price growth.
Key US Events Ahead
This week’s calendar features several high-impact indicators that could set the tone for dollar movement. On Tuesday, traders will watch the Richmond Manufacturing Index and CB Consumer Confidence for fresh insights into business and consumer sentiment.
The spotlight then shifts to Wednesday’s FOMC meeting, where the Fed is widely expected to cut rates by 25 basis points to 4.00%. Markets will closely follow Chair Powell’s press conference for guidance on future easing.
Later in the week, attention turns to Thursday’s Advance GDP, projected to grow 3.0%, followed by Core PCE and Employment Cost Index data on Friday.
Together, these releases will help determine whether the dollar can hold support near 98.70 or extend its recent correction amid shifting rate expectations.
