Live Coverage: Core PCE shows inflation continues falling, cheering markets
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CLAIM OFFERCore PCE came out at 0.1% MoM and 2.6% YoY, as expected. Inflation is falling.
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Why Core PCE shakes markets
The core Personal Consumption Expenditures Price Index (core PCE) is the preferred gauge of inflation for the Federal Reserve (Fed) – the world's most powerful central bank. It excludes volatile energy and food prices, which are set on global markets and have a limited impact by interest rates.
After rising by only 0.2% in April, a smaller increase of 0.1% in May is expected. That yearly figure is set to rise by only 2.6%, also down from 2.8%, and closer to the Fed's target of 2% YoY.
In case of aoft data, stocks and Gold would benefit, while the US Dollar would fall. A surprising increase in inflation would weigh on the precious metal and equities, while buoying the Greenback.
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Core PCE came out at 0.1% MoM and 2.6% YoY, as expected. Inflation is falling.
FXStreet Premium allows subscribers to participate in the coverage and ask analysts questions live.
Why Core PCE shakes markets
The core Personal Consumption Expenditures Price Index (core PCE) is the preferred gauge of inflation for the Federal Reserve (Fed) – the world's most powerful central bank. It excludes volatile energy and food prices, which are set on global markets and have a limited impact by interest rates.
After rising by only 0.2% in April, a smaller increase of 0.1% in May is expected. That yearly figure is set to rise by only 2.6%, also down from 2.8%, and closer to the Fed's target of 2% YoY.
In case of aoft data, stocks and Gold would benefit, while the US Dollar would fall. A surprising increase in inflation would weigh on the precious metal and equities, while buoying the Greenback.
Live financial market coverage
FXStreet covers major economic releases in a live blog format, to provide readers an instant verdict of the data, rapid analysis of key assets, and, for Premium members, the ability to ask our experts questions in real time.
FXStreet Premium
FXStreet Premium provides subscribers access to analysts, exclusive actionable analysis, signals, Ed Ponsi's webinars, trade plans, and a bullish/bearish indicator for Gold on critical events. Join FXStreet Premium here.
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