Forex Today: US Dollar stays on the back foot ahead of PCE

The US Dollar Index (DXY) remains below 99.00 amid traders adjusting positions before a busy data calendar on Wednesday and Federal Reserve Chair Kevin Warsh's address at the Jackson Hole symposium on Friday. The move was slight, keeping the Greenback close to recent lows rather than further dropping, with Treasury's bond-buyback initiatives still pressuring the currency.

The table below illustrates the percentage change of US Dollar (USD) against key currencies today. The US Dollar proved the strongest against the Japanese Yen. The heat map depicts percentage changes of major currencies relative to one another, with the base currency on the left and the quote currency at the top. For instance, picking the US Dollar from the left column and moving to the Japanese Yen shows the percentage change as USD/JPY.

EUR/USD maintains gains near 1.1675, supported by strong German data, including Q2 GDP and IFO business surveys exceeding expectations. GBP/USD hovers near a six-month high, staying just below 1.3650, aided by persistent UK inflation and robust business surveys. USD/JPY inches up, staying above 159.00 as the Yen faces the back foot.

AUD/USD stabilizes in the low-0.7100s, hovering near Australian inflation data after hawkish Reserve Bank of Australia (RBA) minutes. Gold eases from $4,650 per troy ounce as Middle East risk premium wanes. West Texas Intermediate (WTI) Oil continues its decline, slipping over 3% towards $82.00 per barrel after the US confirmed the Strait of Hormuz was clear of mines.

Asian markets lead with Australia's July Consumer Price Index (CPI). Europe features Switzerland's ZEW Survey Expectations for August, followed by a speech from European Central Bank (ECB) member Piero Cipollone. The US session is the key, with a series of releases. The second estimate of Q2 GDP is projected to confirm annualized growth near 1.5%, alongside Durable Goods Orders, Personal Income, and Personal Spending.

The main focus is the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation gauge, with the core annual rate expected to stay around 3.3%. Unless a data surprise occurs, the Dollar is likely to continue its gradual decline into Friday, when Fed Chair Warsh presents the main event at Jackson Hole. Agustin Wazne joined FXStreet as a Junior News Editor, specializing in Commodities and covering Majors.