A monthly data pack for March from the United States, including PCE inflation, was released today at 1:30 pm BST. Report was closely watched as PCE is Fed's preferred measure of inflation and the next rate decision of US central bank is scheduled for Wednesday next week. Market was expecting a small acceleration in headline PCE as well as small deceleration in core PCE. Personal income growth was expected to accelerate compared to a month ago, while personal spending growth was expected to slow.
Actual report turned out to be a hawkish surprise, with headline accelerating more than expected and core PCE holding unchanged. However, data matched expectations on a month-over-month basis. Personal income grew 0.5% MoM, in-line with expectations, while personal spending increased 0.8% MoM, more than expected.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appUS, data pack for March
- Headline PCE (annual): 2.7% YoY vs 2.6% YoY expected (2.5% YoY previously)
- Headline PCE (monthly): 0.3% MoM vs 0.3% MoM expected (0.3% MoM previously)
- Core PCE (annual): 2.8% YoY vs 2.7% YoY expected (2.8% YoY previously)
- Core PCE (monthly): 0.3% MoM vs 0.3% MoM expected (0.3% MoM previously)
- Personal income: 0.5% MoM vs 0.5% MoM expected (0.3% MoM previously)
- Personal spending: 0.8% MoM vs 0.6% MoM expected (0.8% MoM previously)
In spite of the data being slightly hawkish, US dollar dropped in a knee-jerk move, with EURUSD jumping around 0.2%. However, around half of the move has been erased already. Equity indices, like US500, moved higher.
Source: xStation5
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.