News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Gold: -0.58% Oil - US Crude: -0.84% Silver: -3.68% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/xsYcuQg0ug
  • See my #2020election special take on the following question: Will Trade Wars Persist After the US Election? https://www.dailyfx.com/forex/fundamental/article/special_report/2020/09/30/will-trade-wars-persist-after-the-us-election.html
  • The British Pound price sell-off is now testing a critical medium-term support zone and the immediate focus is on inflection off this threshold. Get your $GBPUSD technical analysis from @MBForex here:https://t.co/c3wV3cgmuL https://t.co/0cuWf9Un3e
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.17%, while traders in Wall Street are at opposite extremes with 69.21%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Kgs0Iv4p8Q
  • Federal Reserve Board announces an extension of rules, including prohibiting share repurchases, for big banks through Q4 to maintain capital resilience $SPX
  • US Equity Update (Wednesday Close): $DJI +1.20% $SPX +0.82% $NDX +0.84% $RUT +0.20% $VIX -0.42%
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.15% US 500: -0.19% FTSE 100: -0.22% Germany 30: -0.37% France 40: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/ER57B8vlcm
  • Following last night's debate, the Commission on Presidential Debates (CPD) announced today that they: "will be carefully considering the changes that it will adopt and will announce those measures shortly". #PresidentialDebate2020
  • USD strength has shown in September but that’s been a change-of-pace to the bigger-picture trend of weakness. Which will take over in Q4? Get your $USD market update from @JStanleyFX here:https://t.co/BAFre6au9x https://t.co/SL8kg2GlH0
  • Pelosi says stimulus talks with Mnuchin will continue - BBG
US Core PCE Inflation Measure Stays Below Fed's 2% Target

US Core PCE Inflation Measure Stays Below Fed's 2% Target

2017-03-31 13:05:00
Martin Essex, MSTA, Analyst
Share:

Talking Points

- The core PCE price index, which is the Federal Reserve’s preferred measure of inflation, rose by 1.8% year/year in February, well below the Fed’s 2% target.

- However, that won’t prevent the Fed from raising US interest rates several times this year, providing support for the Dollar.

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

US inflation, as measured by the core PCE price index, was unchanged at 1.8% in February. The January number was revised up from 1.7% but the data still show the Federal Reserve’s preferred measure of inflation comfortably below its 2% target.

The Fed therefore remains on course to raise interest rates at least twice this year, and probably more, providing ongoing support for the Dollar, which barely moved on the figures.

Chart: EUR/USD 1’ Timeframe (March 31 Intraday)

US Core PCE Inflation Measure Stays Below Fed's 2% Target

Chart by IG

The headline PCE price index climbed by 2.1% year/year, up from 1.9% the month before but in line with expectations.

Meanwhile, personal incomes rose by 0.4% month/month, down from an upwardly revised 0.5%, while consumer spending increased by just 0.1% month/month, down from 0.2%. Both figures were in line with forecasts but the increase in spending was the smallest since August and suggested that first-quarter economic growth in the US could be soft.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at martin.essex@ig.com

Follow Martin on Twitter @MartinSEssex

Don't trade FX but want to learn more? Read the DailyFX Trading Guides

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES