26thJanuary 2024
Friday
On January 26th,a notable news event is scheduled in the US, with the release of its monthlyCore PCE Price Index.
USD - Core PCE Price Index m/m
The Core PCEPrice Index is the primary measure of inflation used by the Federal Reserve.Inflation plays a crucial role in the valuation of currency, as increasingprices compel the central bank to elevate interest rates to adhere to theirmandate of containing inflation.
In November2023, the core Personal Consumption Expenditures (PCE) price index in theUnited States, which excluded the more volatile food and energy sectors, showeda slight month-on-month increase of 0.1%, falling below the expected 0.2% rise.This outcome was in line with the previous month's revised rate, continuing atrend of slowing inflation, a key focus of the Federal Reserve. This ongoingdisinflation across various pricing metrics fed into the anticipation that theFederal Reserve might lower borrowing rates multiple times in the forthcomingyear. On a year-over-year basis, the core PCE prices rose by 3.2%, less thanthe forecasted 3.3%, and represented a deceleration from October's adjustedincrease of 3.5%.
TL;DR
· November 2023's US core PCEprice index rose 0.1% month-on-month, less than the expected 0.2%.
· The year-over-year increase was3.2%, lower than the anticipated 3.3%.
· This data reflects acontinuation of the trend of slowing inflation.
· The trend is feedingexpectations of multiple Federal Reserve rate cuts in the upcoming year.
The projected CorePCE Price Index is anticipated to show an increase to 0.2%, up fromthe previous result of 0.1%.
The upcomingrelease of the monthly Core PCE Price Index is scheduled for January26th at 1:30 PM GMT.
The last time,US Core PCE Price Index m/m was announced on the 22nd of December,2023. You may find the market reaction chart (USOIL M5) below:
