European session review: USD little changed as investors' attention turns to U.S. inflation data

USD changed little against its major rivals in the European session on Thursday, as market participants awaited the release of the U.S. data on the core personal consumption expenditures price index (PCE), the Fed’s preferred inflation measure, set for Friday, hoping to receive any cues on the near-term direction of the U.S. monetary policy.

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.02% to 90.03.

Hotter-than-anticipated April's U.S. CPI data, which were released earlier this month, raised worries that accelerating inflation might prompt the Federal Reserve to pull back on its stimulus for the U.S. economy. But the Fed's officials have been playing down the risk of rising prices, reiterating the view that any spike in inflation will be temporary. The Fed's governor Randy Quarles, however, acknowledged yesterday that a stronger-than-expected growth of the economy, employment and inflation over the coming months could prompt a discussion on the adjustment of the pace of asset purchases, although he heightened the need for patience in tracking inflation data.