US Dollar Loses Momentum Ahead of PCE Data and Fed Decision

The US dollar has begun to lose momentum as investors shift their attention to a busy week for currency markets. The dollar's recent weakness comes ahead of the release of the US Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge.

This week also marks the first Federal Reserve policy decision under newly appointed Chair Kevin Warsh. Markets will closely watch for any signals on the pace of future rate moves. In addition to the Fed, several other central banks are scheduled to meet, adding to potential volatility.

Beyond monetary policy, global PMI data will provide a snapshot of economic activity across major economies. The combination of inflation data, central bank decisions, and business surveys is expected to drive significant moves in major currency pairs.