US dollar lags G10 peers ahead of PCE report for April
The US dollar is giving back some of recent gains today, being the worst performing G10 currency on the day. US currency may become more volatile around 1:30 pm BST as a number of macro reports from the United States will be released. Traders will be offered PCE inflation, personal income, personal spending and durable goods orders data for April. PCE print will be the most closely watched as an upward revision to US Q1 GDP data, led to a jump in hawkish Fed pricing. Money markets currently price in around 20 basis points of tightening over the next two Fed meetings with a 38% chance of a 25 bp rate hike in June. Having said that, an upside surprise in PCE data could see those hawkish bets increase further. Nevertheless, it should be noted that CPI data for April which was already released came in below market expectations.
1:30 pm BST - US, data pack for April
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app- Core PCE. Expected: 4.6% YoY. Previous: 4.6% YoY
- Personal income. Expected: 0.4% MoM. Previous: 0.3% MoM
- Personal spending. Expected: 0.3% MoM. Previous: 0.0% MoM
1:30 pm BST - US, durable goods orders for April
- Headline. Expected: -1.0% MoM. Previous: +2.8% MoM
- Ex-transportation. Expected: 0.0% MoM. Previous: 0.2% MoM
Latest CPI and PCE readings. Source: Macrobond, XTB
EURUSD continues to drop with a sequence of lower lows and highs as US yields continue to climb. EURUSD is currently testing 23.6% retracement of the upward move launched in September 2022. A break below this support level could see that pair move towards 1.07 mark. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
