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US Core PCE Price Index slips to 1.3%

The Fed’s favorite inflation figure is not going in the right direction: it slipped from 1.4% to 1.3% y/y. Other figures are mixed: personal income beat with a rise of 0.3% while personal spending dropped by 0.3%.

The US dollar is ticking down on the releases.

The US released some figures regarding income and consumption. The most important figure for the Fed is the Core PCE price index –  probably the central bank’s favorite measure of inflation.

The US dollar opened the trading week on a somewhat weaker note.

The data for December 2014:

  • Personal income: exp. 0.2%. Actual: +0.3%.
  • Core Personal Consumption Expenditures: exp. +0.1% m/m, last time we had 1.4% y/y. Actual 1.3% y/y.
  • PCE Price  Index: last was =0.2% m/m, +1.2% y/y. Actual: only 0.7% y/y.
  • Personal Spending: exp. -0.2%. Actual -0.3%.

Later we have the ISM Manufacturing PMI – the first hint towards Friday’s Non-Farm Payrolls. Later in the week we have the services PMI and the ADP NFP.

More:  EUR/USD wedge – where will it break to?

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.