U.S. Dollar Advances Ahead Of Jackson Hole Symposium Amid U.S. Inflation Data Release

(RTTNews) - The U.S. Dollar value edged higher ahead of the Jackson Hole Symposium that begins tomorrow as investors parsed the July month's personal spending and income data that showed an increase against the Personal Consumption Expenditure price index and the core PCE index that matched expectations.

Today, the U.S. Dollar Index DXY which measures the Greenback against a basket of other major currencies was last seen trading at 99.14, up by 0.23 (or 0.23%).

While against the Euro, the USD was trading at 1.165, up by 0.17%, against the GBP, the USD was trading at 1.359, up by 0.38%.

Against the USD, the Japanese Yen was trading at 159.318, down by 0.08%, the Swiss Franc was trading at 0.805, down by 0.50%; and the Canadian Dollar was trading at 1.387, down by 0.29%.

Against one unit of Australian Dollar, the USD was trading at 0.717, down by 0.18%.

On the economic front, the Mortgage Bankers Association of America revealed that the Purchase Index in the U.S. decreased to 154.40 on August 21 from 154.80 of the previous week.

Data released by the U.S. Bureau of Economic Analysis showed that the Personal Consumption Expenditure price index increased 3.70% year-on-year and increased 0.20% in July on a month-on-month basis. Both the numbers came in slightly above traders' forecasts.

On a year-on-year basis, the core PCE index (which excludes food and energy) rose by 3.30% in July and on a month-on-month basis, rose 0.20% from the previous month in July.

As both these data matched analysts' expectations, suggesting that inflation, although steady, continues to remain above the target of the U.S. Federal Reserve, expectations of a rate hike have now slightly dimmed, pressuring the U.S. dollar on the downside.

However, personal income in the U.S. rose by 0.40% from the previous month to $27,115 billion in July.

Personal spending increased by $36.3 billion (or 0.20%), in July from the previous month, slowing from a 0.30% gain in June but exceeding expectations for a 0.10% increase, indicating signs of strength in the economy.

Investors are now focusing on the upcoming Jackson Hole Symposium in Wyoming where the Federal Reserve Chair Kevin Warsh will deliver his keynote address on Friday.

Warsh's speech assumes significance as analysts seek to deduce clues on the Fed's monetary path ahead amid ongoing U.S.-Iran war, U.S. Treasury's long-term bond buyback decision, and the U.S. national debt crossing $40 trillion.

Currently, investors are betting on a 36.10% chance of a 25-basis-point interest rate-hike at its upcoming meeting of the U.S. Federal Reserve on September 15-16 while the odds on rates being held at the current level stand at 63.90%, according to the CME Group's FedWatch Tool.

On Tuesday, citing regional officials, CNN reported that Iran and Oman are set to jointly create an interim route for shipping through the Strait of Hormuz.

Iran's Deputy Foreign Minister Kazem Gharibabadi stated that Iran and Oman have reached an agreement to establish a temporary seven-mile-wide transit route through the Strait of Hormuz.

In an interview with radio host Glenn Beck aired today, U.S. President Donald Trump claimed again that the U.S. got rid of all mines in the strait and that the strait is functioning with a lot of oil pouring out.

While U.S. President Donald Trump warned that any Iranian vessel placing new mines would be destroyed, Gharibabadi warned that any mine-sweeping vessel entering the strait would be targeted, leaving the Strait of Hormuz reopening uncertain.