Core PCE MoM missed estimates, with 0.2% vs 0.3% expected, showing that underlying inflation is coming down and increasing hopes for an early rate cut. The initial reaction is risk-on, being favorable to Gold and stocks and unfavorable to the US Dollar.
It is essential to note that end-of-month action is in play.
Live coverage of US core PCE.
Why core PCE matters for markets
The Federal Reserve (Fed) is the world's most influential central bank, and it has two mandates – full employment and price stability. When it comes to the latter, the Fed aims for 2% annual core PCE. The methodology used in the PCE report is considered more up-to-date with consumer preferences than the CPI, which is released earlier.
Core PCE excludes more volatile items such as energy and food, which are influenced by global developments. The Fed's interest rate have more impact on investments and savings, which are reflected in prices of services, housing and durable goods.
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 abilty 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD: No changes to the range bound theme
Once again, AUD/USD navigated a vacillating session and ended around the 06650 zone despite the corrective retracement in the Greenback ahead of the release of key US PCE data.
EUR/USD: Bulls remained unconvinced
EUR/USD set aside part of the recent bearishness and revisited the area above the 1.0700 barrier, although that bullish attempt appears to have lacked conviction in spite of the broad-based correction in the US Dollar.
Gold back to its comfort zone around $2,330
Gold bounces off the psychologically important $2,300 level and trades above $2,320 on Thursday. The benchmark 10-year US Treasury bond yield stays in negative territory following latest US data, allowing XAU/USD to extend its rebound.
Ethereum on-chain metrics point to potential rally
Ethereum (ETH) is up nearly 3% on Thursday as upcoming spot ETH ETF launch and key on-chain metrics suggest an ETH rally might be around the corner.
The Federal Reserve is bleeding red ink and you're on the hook
The Federal Reserve is losing over $1 billion every week and you're on the hook. Since September 2022, the central bank has reported losses of around $176.4 billion.