USD traded mixed against other major currencies in the European session on Friday as investors waited for the release of the Federal Reserve's preferred inflation measure - the core personal consumption expenditures (PCE) price index later in the day, which could shed light on the future path of U.S. monetary policy.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, slipped 0.04% from the previous close to 100.48.
Economists expect the core PCE price index to show an increase of 0.2% MoM in August, the same pace as in the previous month, and a jump of 2.7% YoY, slightly up from 2.6% You in July.
Yesterday’s round of economic releases, including the final estimate of the second-quarter GDP growth, the August durable goods orders report, and weekly jobless claims figures indicated that the U.S. remains in a strong economic position. Against this backdrop, markets trimmed their expectations for another 50 basis points rate cut at the Fed’s November meeting. According to CME FedWatch, traders are now seeing a 50.8% probability of the outsized reduction by the U.S. central bank in November and a 49.2% probability of a 25-basis-point decrease.