Daily summary: Fed’s preferred PCE doesn’t change market expectations; silver gains 3.00% 📈

U.S. indices end the day slightly higher, gaining after the PCE report came in line with expectations. US500 is up +0.50%, US100 +0.25%, and US2000 +0.70%.

The U.S. dollar and Canadian dollar are among the weakest G10 currencies. The dollar index USDIDX falls 0.25%. On the other side of the scale is the British pound. The EURUSD pair gains 0.33%.

U.S. PCE inflation readings matched the expectations of Bloomberg-surveyed analysts, so the immediate reaction on the EURUSD pair was limited.

Moreover, such a reading does not appear to significantly change the outlook for Fed policy compared to what the market had already priced in. The August report showed core inflation rising 2.9% y/y and headline inflation rising 2.7% y/y.

Thomas Barkin of the Federal Reserve said in today’s interview that incoming data will determine whether the Fed should continue to cut interest rates. The Federal Reserve needs to move a bit more toward fulfilling its employment mandate. According to Barkin, unemployment looks somewhat shakier, but the inflation situation is better.

In September, consumer sentiment in the United States deteriorated by about 5%. One-year inflation expectations fell slightly to 4.7%, but long-term expectations rose to 3.7%, continuing the recent upward trend.

Canada’s monthly GDP growth came in at 0.2% versus 0.1% expected, after a -0.1% decline previously.

IBM is steadily strengthening its position as one of the leading innovators in modern technologies, with a particular focus on quantum computing and artificial intelligence.

President Donald Trump signed an executive order requiring ByteDance to reduce its control of the company to a maximum of 20%. The U.S.-led investor group (including Oracle, Silver Lake, and MGX) would hold around 45%, while the remaining 35% would go to other existing/new investors.

Oil prices are up nearly 0.5% today, fueled by U.S. President Donald Trump’s pressure on buyers of Russian energy. Trump is urging leaders such as Erdogan and Orban to stop buying oil from Russia, aiming to accelerate the end of the war in Ukraine.

We once again see strong euphoria in the precious metals market, where SILVER is gaining nearly 3.0% and GOLD is up 0.8%.

The cryptocurrency market is trying to rebound after the recent record liquidation of long positions. Bitcoin gains 0.90% today, climbing back above USD 110,000. Even more interest is seen in Ethereum, which rises 4.00% to USD 4,030.