Investors expect PCE Inflation to remain elevated at 4.6% in April, dampening the dollar.

It's PCE Day, and the forex markets expect that consumer prices will stay about the same from month to month.

In the early hours of trading today, the EUR/USD pair was mostly flat and just a little bit down. Individual forex traders and money managers are eager to see what the latest PCE inflation report says. And they'll probably use that information to make quick assumptions about how fast interest rates will go up.

In this situation, the euro stayed low near $1.0720, down from a high of $1.0744 during the session. In the past three weeks, Europe's currency has lost more than 3% of its value against a strengthening dollar. This is because the US economy has been moving forward thanks to a strong job market and a lot of good news.

Will the PCE inflation report for today add to the recent good news? Analysts think that PCE, the Fed's favourite way to measure inflation, stayed the same at 4.6% in April, the same as it was a month ago. Still, the news could cause forex pairs and commodities to be more volatile.