US Dollar: Upcoming data to support hawkish Fed stance – BBH
Brown Brothers Harriman’s Elias Haddad notes the Dollar has eased from recent highs as lower Oil prices and comments from New York Fed President John Williams temper rate expectations. However, upcoming US August PCE and September ADP data are expected to show sticky inflation, stronger consumer spending and resilient labor demand, which BBH says should reinforce the Fed’s hawkish bias and…
Brown Brothers Harriman's Elias Haddad points out that the US Dollar has slipped from its recent peaks due to lower oil prices and comments from New York Fed President John Williams, which have moderated expectations for rate hikes. However, Haddad anticipates that upcoming US economic data in August and September will demonstrate persistent inflation, robust consumer spending, and steady labor market performance.
These factors, according to BBH, will reinforce the Fed's hawkish stance and bolster the US Dollar's strength. The headline forecast for the Personal Consumption Expenditures (PCE) price index is an increase of 0.3% month-over-month, compared to 0.2% in July, and will remain flat at 3.7% year-over-year. Sticky US inflation, a resurgence in consumer spending, and a resilient labor market will bolster the Fed's hawkish outlook, contributing to the Dollar's upward trend.
Prior to the PCE release, market observers expect September ADP private payrolls to come in at +72,000, up from +38,000 in August.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
