By Chuck Mikolajczak
NEW YORK, Aug 26 (Reuters) - The dollar advanced on Wednesday after a batch of U.S. economic data, including a reading on inflation, that slightly pushed up expectations for a rate hike from the Federal Reserve ahead of the Jackson Hole symposium of central bankers this week.
The Commerce Department said the Personal Consumption Expenditures Price Index increased 3.7% in the 12 months through July, unchanged from June and slightly above the 3.6% estimate of economists polled by Reuters. On a month-over-month basis, PCE rose 0.2% versus the estimate calling for a 0.1% increase, after falling 0.1% in June.
"Overall, because the headline was warm enough to prevent a dovish victory, those details weren't really strong enough to hand the hawks a clear win, so I wouldn't chase the rally at all," said George Vessey, lead FX and macro strategist at Convera in London.
"But I wouldn't fade it aggressively either, we've got loads of competing narratives driving FX at the moment, particularly the dollar, haven't we, so it's hard to have a strong conviction in either direction right now."
#reuters #estimate
NEW YORK, Aug 26 (Reuters) - The dollar advanced on Wednesday after a batch of U.S. economic data, including a reading on inflation, that slightly pushed up expectations for a rate hike from the Federal Reserve ahead of the Jackson Hole symposium of central bankers this week.
The Commerce Department said the Personal Consumption Expenditures Price Index increased 3.7% in the 12 months through July, unchanged from June and slightly above the 3.6% estimate of economists polled by Reuters. On a month-over-month basis, PCE rose 0.2% versus the estimate calling for a 0.1% increase, after falling 0.1% in June.
"Overall, because the headline was warm enough to prevent a dovish victory, those details weren't really strong enough to hand the hawks a clear win, so I wouldn't chase the rally at all," said George Vessey, lead FX and macro strategist at Convera in London.
"But I wouldn't fade it aggressively either, we've got loads of competing narratives driving FX at the moment, particularly the dollar, haven't we, so it's hard to have a strong conviction in either direction right now."
#reuters #estimate
2 months ago
