US Dollar trims loses ahead of eventful week, Fed decision looms

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• The US Dollar is trading soft against its rivals and seems to be consolidating the last session’s gains.
• The Core PCE from September matched expectations at 3.7% YoY.
• The US bond yields are mixed, while dovish bets on the Fed remain high.
• Focus now shifts to next week’s Fed decision.

The US Dollar (USD) measured by the US Dollar Index (DXY) declined to 106.35, near the 20-day Simple Moving Average (SMA), and then recovered towards 106.60. Datawise, Personal Consumption Expenditures (PCE) figures from September showed no surprises, and investors seem to be taking profits after three consecutive days of gains.
 
The United States economy is holding strong, as seen in the last set of economic activity figures, which included a preliminary estimate of the Q3 Gross Domestic Product (GDP) rising at an annualised rate of more than 4%. Investors now set their sights on next week’s Federal Reserve (Fed) decision on the first day of November to gather further clues on the bank’s next steps.