Euro comes under pressure against US Dollar after mixed US PCE data

The EUR/USD currency pair came under modest downward pressure on Wednesday, trading lower by 0.12% around 1.1660 following the release of the latest US Personal Consumption Expenditures (PCE) Price Index. The report presented a mixed inflation profile, as the headline PCE Price Index rose 0.2% month-over-month in July, surpassing the 0.1% forecast and holding steady at an annualized rate of 3.7%. Meanwhile, the core PCE reading, which is the Federal Reserve's preferred inflation gauge, met market expectations with a 0.2% monthly increase and an annual rate of 3.3%. Accompanying economic data showed second-quarter US GDP growth confirmed at an annualized 1.5%, while personal income rose 0.4% and spending increased 0.2%. Market expectations for Federal Reserve interest rate policy remained largely steady following the release, with the CME FedWatch Tool reflecting an estimated 65% probability that policymakers will keep benchmark interest rates unchanged at the upcoming September meeting. The US Dollar Index hovered near 99.07 as traders weighed mixed macroeconomic signals against recent Treasury buyback announcements.