FX Awaits US Data

At 8:30 AM US May core PCE y/y (exp 1.9%, prev 2.0%)
US May PCE Deflator y/y (exp 2.4%, prev 2.2%)
US May Personal Spending (exp 0.7%, prev 0.5%)
US May Personal Income (exp 0.6%, prev -0.1%)
Canada April GDP m/m (exp 0.3%, prev 0.3%)
At 9:45 AM US June Chicago PMI (exp 57.5, prev 61.7)
At 10:00 AM US May Construction Spending m/m (exp 0.1%, prev 0.1%)

The dollar is firmer against the yen, but remains mired near two-month lows versus the sterling heading into a data-filled Friday session. Yesterday’s FOMC statement reiterated the Fed’s primary concern of inflationary pressure in the economy and as such, will likely maintain its unchanged stance over the coming months.

Accordingly, traders will look ahead to the Fed’s inflation indicator of choice with the release of the May core personal consumption expenditures – seen slipping slightly to 1.9% from 2.0%. The PCE deflator is expected to edge higher to 2.4% from 2.2%. Meanwhile, personal spending for May is seen rising to 0.7% from 0.5% and personal income is forecasted to reverse the prior month’s 0.1% decline, edging up by 0.6%. Also slated for release today will be the June Chicago PMI, which is expected to drop to 57.1, compared with 61.7 in the previous month