The US dollar is at an inflection point, and today’s Core PCE data and the August NFP report will be key in determining its direction. This week, the EUR/USD has bounced from 0.95 to 1.12, and Bitcoin and other cryptocurrencies have rallied in tandem. However, the EUR/USD could not hold above 1.12, and neither could Bitcoin and other cryptocurrencies hold at their 2023 highs.The Core PCE Price Index m/m will be released later today in the North American session. The market expects it to be 0.2% MoM, but there is a risk that it will be lower. If the data confirms that inflation has peaked, as Fed Chair Jerome Powell suggested at the Jackson Hole this August, the dollar might take a hit.The second part of the Fed’s mandate deals with job creation. The JOLTS report and the private employment have both disappointed this week, so the bias is that the NFP report will also come on the soft side. If this is the case, the dollar’s weakness should accelerate.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	North America
Countries
Sentiment	negative
Relevance Score	10
People	Larry Kudlow, Janet Yellen, John Williams, Jerome Powell, Donald Trump
Companies	Core PCE Price Index, NFP Report, Federal Reserve, JOLTS, Jerome Powell
Currencies	Ethereum, US Dollar, Euro, Bitcoin, nfp report
Securities	None