Core PCE Price Index remained at a y/y level of 1.5% in August, even though on monthly basis, we had a better than expected rise of 0.1%. While other figures were OK, this figure keeps the focus on the labor market, which is moving. Personal spending is up 0.5%, as expected, and personal income is up 0.3%, also as expected.
The US dollar is taking a break from its winning streak and profits are taken.
The Core PCE Price Index is the Feds favorite measure of underlying inflation. M/m, no change was expected for August after +0.1% last month. A y/y rise of 1.5% was recorded in July. Personal spending was expected to rebound with a rise of 0.5% m/m and personal income to rise by 0.3% m/m.
We still have pending home sales on the agenda today. A drop of 0.4% is expected here. There are certainly more interesting events later in the week, and Non-Farm Payrolls is the key one in the US. For more, see the forex weekly outlook.
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