The US Dollar (USD) trades flat to a touch softer on Friday after comments from European Central Bank Executive Board member Isabel Schnabel left European trading with a hawkish undertone. Although recent figures in the Eurozone might be pointing to disinflation, ECB's Schnabel said that the scenario of a few consecutive rate cuts is not on the table as the ECB needs to remain cautious. This gave some oomph to the Euro (EUR) against the US Dollar (USD). Still, the rather elevated spending component could still weigh in and push the US Dollar higher once the European session comes to an end.

The main economic data point for this Friday, the core Personal Consumption Expenditures (PCE) Price Index, the favourite inflation gauge of the US Federal Reserve (Fed), did not bear any new elements. All PCE components fell in line and even the +0.5% Personal Spending fell in line. Only a handfull of datapoints left with Chicago Purchase Managers Index (PMI) number and University of Michigan's final reading for August's Consumer Sentiment.

Source: Fxtsreet