The dollar index (DXY) fell by 0.02% on Friday, influenced by a weaker-than-expected August MNI Chicago PMI, which dropped to 41.5 from a forecast of 46.0, and a lowered revision of the University of Michigan’s consumer sentiment index to 58.2. Fed Governor Christopher Waller supported a 25-basis point rate cut at the upcoming September FOMC meeting, contributing to the dollar’s decline.
US July personal spending grew by 0.5% month-over-month, matching expectations, while the core PCE price index rose to a 5-month high of 2.9% year-over-year. Meanwhile, EUR/USD rose by 0.11% backed by stronger-than-expected German CPI data, although German July retail sales saw a significant decline of 1.5%, marking the largest drop in nearly two years.
In Japan, the July jobless rate fell to 2.3%, its lowest in 5.5 years, despite a 1.6% month-over-month decline in industrial production and retail sales. Precious metals surged, with gold rising by 1.20% and silver by 2.58%, driven by concerns over Fed independence and global inflation pressures.
