USD Steady as PCE Meets Expectations; Atlanta Fed Q3 GDP Estimate Surges to 5%

The US dollar traded mixed against major currencies as key economic data painted a complex picture for traders. The June PCE inflation reading came in at 3.7%, matching consensus expectations and signaling steady but persistent price pressures. Meanwhile, the Dallas Fed Trimmed Mean PCE fell sharply to 1.4% from 2.7% in May, suggesting underlying inflationary momentum may be cooling. White House Advisor Hassett reinforced the easing inflation narrative. However, the Atlanta Fed GDPNow model issued a surprisingly robust initial Q3 GDP estimate of 5.0%, indicating strong economic momentum that could complicate the Federal Reserve's rate trajectory. Major US equity indices staged a snapback rally, with market participants also awaiting after-hours earnings from Amazon and Apple. BOE Governor Bailey noted that UK disinflation is proceeding but at a slow pace, offering a mildly hawkish signal for GBP pairs. For dollar traders, the tension between cooling inflation metrics and surging GDP growth creates a neutral-to-slightly-bullish near-term outlook, with upcoming data likely to determine directional conviction.