The really important data for the dollar Index (USDX) later this week

Probably the most important US data release of the week is due out on Thursday. That is the January Personal consumption/Expenditure (PCE) report, at 1.30pm GMT. This is the preferred inflation gauge for the Fed (more so than CPI) and so it could be really important for the markets and whether or not they dial back further on Fed rate cut expectations. Personally, I agree with Jim Cramer (CNBC Anchor). He might be as mad as a brush at times, but also brilliant at times too and he begged the question this time last week: Why does the Fed need to cut rates? Perhaps this PCE data might provide reasons for that or not, we shall see on Thursday. I will provide more detail on what is expected from this data a little nearer the time, but right now it is mixed in terms of monthly and annualised readings. So, far today the dollar overall is mixed, but lower in terms of the dollar index (as a barometer). That is because the EUR/USD has lifted today. The dollar index (USDX) closed on Friday at 103.96, after failing to make much progress back above the 104 handle. It has fallen back 103.71 this morning. It is right now trading back above 103.75