• US Dollar Index advances US economy expanded in the second quarter.
• Headline PCE is forecast to rise 2.6% YoY, while core PCE is expected to increase 2.9% in July.
• Fed concerns have deepened after US Vice President Vance confirmed the end of the central bank’s autonomy.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground after three days of losses and trading around 98.00 during the Asian hours on Friday.

Traders are awaiting the July Personal Consumption Expenditures (PCE) Price Index due later in the North American session, the last key inflation release before the Federal Reserve’s September meeting. Headline PCE is forecast to rise 2.6% year-over-year in July, while core PCE is expected to increase 2.9% over the same period.

The Greenback received support as the United States (US) economy grew in the second quarter. US Gross Domestic Product (GDP) Annualized climbed 3.3% in Q2, a faster pace than the initially estimated 3.1% increase and 3.0% prior.

Fed Governor Christopher Waller said on Thursday that he would support an interest-rate cut in the September meeting and further reductions over the next three to six months to prevent the labor market from collapsing, per Reuters.

The concerns over Fed independence have increased following the recent remarks from US Vice President JD Vance. Vance confirmed, in an interview with USA Today on Thursday, the end of the Federal Reserve’s autonomy. He noted: "I don't think we allow bureaucrats to make decisions about monetary policy and interest rates without any input from the people that were elected to serve the American people...POTUS is much better able to make these determinations."