All eyes are on US Core PCE today as the Dollar remains bid. Kit Juckes, Chief Global FX Strategist at Société Générale, expects the greenback to remain underpinned by strong figures.

Key US data releases

“This morning has thrown up a small downward revision to German Q4 GDP, soft but unsurprising French retail sales data but eyes are on US January personal income and spending data.”

“The consensus looks for a chunky 0.4% monthly rise in the core PCE deflator, which nevertheless can see the annual rate fall to 4.3%, and a 1.1% monthly gain in real personal spending, thanks to the weather. If that’s how it works out, the market may continue to wonder whether we’ll get more than three 25 bps hikes before the FOMC is done tightening, and Dollar’s bounce may have ground on a bit further.”

See – US Core PCE Preview: Forecasts from eight major banks, meaningful acceleration