The dollar index (DXY00) today is up by +0.05%. The dollar is climbing today on signs of strength in US consumer spending after July personal spending rose by the most in four months. Also, sticky inflation pressures are hawkish for Fed policy and are supportive for the dollar after the US July core PCE price index, the Fed's preferred inflation gauge, rose to a 5-month high.
The dollar fell back from its best levels on the weaker-than-expected Aug MNI Chicago PMI report and after the University of Michigan US Aug consumer sentiment index was revised lower. Also, gains in the dollar are limited due to dovish comments from Fed Governor Christopher Waller, who said he supports a 25 bp rate cut at the September FOMC meeting and anticipates additional rate cuts over the next three to six months.
