Ella 
Here’s what you need to know on Thursday, August 31st:
Following Wednesday’s volatility, major currency pairs remained relatively calm early Thursday. Market participants will be closely watching euro zone inflation data ahead of the release of minutes from the European Central Bank’s (ECB) monetary policy meeting. In the second half of the day, the U.S. economy will release the personal consumption expenditures (PCE) price index (the Fed’s preferred inflation gauge) and weekly initial jobless claims data.
Eurozone Inflation Outlook: Although price pressures have eased, ECB hawks may not be happy.
The U.S. Bureau of Economic Analysis announced that it lowered the annualized growth rate of gross domestic product (GDP) in the second quarter from an initial estimate of 2.4% to a second estimate of 2.1%. In addition, ADP reported that private sector employment increased by 177,000 in August, which was lower than market expectations for an increase of 195,000. The dollar struggled to find demand during U.S. trading hours after the disappointing data, which saw the benchmark 10-year Treasury yield fall toward 4%. The U.S. dollar index (DXY) closed in negative territory for the third day in a row. While the U.S. dollar index held steady above 103.00 during European morning trading, it has fallen nearly 1% since the start of the week.
US core PCE inflation outlook: Fed’s preferred price gauge will remain above target.
