US PCE accelerated to 3.7%, core PCE 3.6%, both above forecasts. Personal spending and income also beat. Euro and pound fell. Jackson Hole next.
Alpha Score of 67 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
The euro and pound retreated from recent highs on Thursday after US economic data came in stronger than expected, pushing the dollar higher. The core PCE price index, the Federal Reserve's preferred inflation gauge, accelerated to 3.6% in the second quarter, above the 3.4% forecast. Headline PCE hit 3.7%, also exceeding estimates of 3.6%.
Personal spending rose 0.2%, double the 0.1% expected, while personal income increased 0.4%, twice the forecast. Second-quarter GDP growth was revised to 1.5%, matching market expectations.
EUR/USD failed to hold above the 1.1700 resistance level and formed a doji pattern on the daily chart. Support is seen at 1.1620–1.1580. GBP/USD showed a tower pattern, with support at 1.3530–1.3560. A break below that zone could target 1.3440–1.3480.
The next focus is on initial jobless claims, expected at 208,000, and the Jackson Hole symposium scheduled for next week. Forex market analysis will track how the dollar responds to Fed guidance.
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