PCE announcement is imminent, which may affect expectations for the pace of Fed interest rate cuts

The dollar held steady near a one-week high against major currencies on Friday as traders toned down expectations for a sharp interest rate cut by the Federal Reserve. The dollar is on track to end a five-week losing streak as U.S. job market and GDP data suggest a soft landing for the U.S. economy. All eyes are now on U.S. PCE inflation data to be released later today, which could affect expectations for the pace of Fed rate cuts. Federal Reserve Chairperson Powell previously said it was time to correct policy. The way forward is clear. The timing and pace of rate cuts will depend on upcoming data, the changing outlook and the balance of risks.