US Inflation Falls, US Dollar Dips Ahead of Fed Chair Powell’s Speech

[MongiIG]

US DOLLAR PRICE AND CHART ANALYSIS

• US inflation data comes in slightly cooler than expected.
• All eyes are now on Fed chair Powell’s speech at the Jackson Hole symposium.

 

The Federal Reserve’s preferred inflation measure, the Core PCE Price Index, missed expectations across the board according to data just released and fell below last month’s levels.

This fall follows official data earlier this month that showed US headline inflation falling in July from 9.1% to 8.5%, mainly due to a slowdown in energy costs, while core inflation remained steady at 5.9%, beating market expectations of 6.1%.

The US dollar slipped post-release but little is expected in terms of further movement ahead of Fed chair Jerome Powell’s speech at 15:00 UK at the Jackson Hole symposium. The markets have been in a holding pattern this week waiting for Powell’s words which are likely to reinforce that the Fed will keep on hiking rates until inflation is seen falling towards target.

 

Aug 26, 2022 | DailyFX
Nick Cawley, Strategist