• US Dollar DXY struggling to rebound amid mixed PCE figures and anticipations of Fed cuts.
• Possibility of a rate cut by the Fed in September remains, though somewhat toned down.
• All eyes are now on next week’s FOMC decision.

On Friday, the US Dollar, as depicted by the DXY, displayed some resilience despite encountering daily losses post the release of mixed Personal Consumption Expenditures (PCE) data. The market continues to wrestle with the prospect of a rate cut in September by the Federal Reserve (Fed), even though expectations have somewhat softened.

Signs of disinflation in the US economy have begun to surface, thereby boosting confidence in a potential rate cut come September. Yet, Federal Reserve officials remain cautious and data-dependant so next week’s meeting will be crucial for the short-term market’s dynamics.