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According to analysts from Danske Bank, the US PCE core inflation is expected to remain at 1.9% (annual), below the Federal Reserve 2% target.

Key Quotes:  

“In the US, PCE core inflation numbers for January are released on Friday. Based on the CPI index, we expect PCE core rose 0.2% m/m (unchanged at 1.9% y/y) which is just below the Fed’s 2% target. Moreover, private consumption growth for Q4 is also to be released next week (Thursday).”

“The coming week also brings housing market numbers for February on Thursday. Recently, the housing market has started to show a bit weakness especially home sales numbers, which we expect is driven by higher mortgage rates. However, housing market data are quite volatile – we will continue to monitor the housing market.”

“Next week also sees speeches from several FOMC members. The speeches are going to fade into the background for some time, as the Fed has clearly signalled it is on hold for the rest of the year.”