Dollar Awaits Warsh Speech at Jackson Hole Amid Mixed US Data Signals

The US dollar is in a wait-and-see mode ahead of Kevin Warsh's speech at Jackson Hole. Recent data has offered mixed signals, with core PCE inflation matching expectations at 0.2% month-on-month and 3.3% year-on-year. Headline PCE came in slightly firmer at 0.2% and 3.7%, respectively.

Real personal spending was unchanged in July as households chose to save rather than spend, while real disposable income has been flat for over a year. The institution remains confident in its call for the Federal Reserve to hold rates on September 16th, which would likely weaken the dollar.