US Dollar Surges on Unexpected PCE Price Index Result

The U.S. dollar moved higher after the release of economic reports from the United States, including the PCE Price Index, which remained at 3.7% in July.

Traders were expecting a drop to 3.6%, and this unexpected result provided material support to the American currency as they worried about potential rate hikes by the Federal Reserve.

The Fed's favorite inflation gauge, the PCE Price Index, is closely watched for signs of inflationary pressures, which could lead to higher interest rates in the future.

The U.S. Dollar Index gained ground, reaching a level of 99.25-99.40, and if it manages to settle above this range, it will head towards the next resistance at 100.00-100.15.