August’s US Personal Consumption Expenditure (PCE) data is set to be released. Most expectations indicate a 0.5% increase month-on-month, and it is anticipated that this will mark the eighth consecutive monthly increase. Earlier on the 14th, August’s US retail sales were published and surpassed expectations. Should August’s PCE data show a similar outcome, it might lead to a stronger US dollar.
Furthermore, August’s US personal income, August’s US PCE deflator, and September’s US Chicago Purchasing Managers’ Index are also to be announced. The expected increase in US personal income is approximately 0.4% month-on-month, with expectations for a nineteenth consecutive monthly rise. The PCE deflator for August is expected to rise by around 3.5% year-on-year, accelerating from the 3.3% increase in the previous month. September’s US Chicago Purchasing Managers’ Index is anticipated to be around 47.6 in most predictions, falling below the previous month’s 48.7, which could indicate the first drop in four months.
As of now, there is a prevailing sentiment of selling the US dollar, likely due to month-end rebalancing. However, it’s essential to remain cautious as the flow could potentially shift following the release of the US Personal Consumption Expenditure (PCE) data.