1:32 PM · 27 October 2023

BREAKING: USD gains after in-line PCE data

EUR/USD
Forex
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Monthly data pack for September from the United States, including PCE inflation data, was released today at 1:30 pm BST. PCE data is released with a much bigger lag than CPI data but as it is Fed's preferred measure of inflation, it is watched closely by market participants. Expectations were for a deceleration in both headline and core gauges.

Actual report confirmed expectations with headline PCE slowing from 3.5 to 3.4% YoY and core gauge moving down from 3.9 to 3.7% YoY. Personal income data came in slightly weaker than expected while personal spending data beat expectations. USD moved gained n a knee-jerk move. However, this moves were quickly retraced and EURUSD turned higher later on.

US, data pack for September

  • PCE inflation: 3.4% YoY vs 3.4% YoY expected (3.5% YoY previously)
  • Core PCE inflation: 3.7% YoY vs 3.7% YoY expected (3.9% YoY previously)
  • Personal income: 0.3% MoM vs 0.4% MoM expected (0.4% MoM previously)
  • Personal spending: 0.7% MoM vs 0.5% MoM expected (0.4% MoM previously)

Source: xStation5

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