Saturday , 2 November 2024
Home Forex The Fed’s preferred measure of inflation is expected to ease further
Forex

The Fed’s preferred measure of inflation is expected to ease further

Yesterday, we got another good report as the US PPI missed expectations by a big margin making the market to fully price back two rate cuts by the end of the year.

Forecasters can reliably estimate
the PCE once the CPI and PPI are out, and the intial estimates show that Core PCE M/M is expected at 0.13%, while the Y/Y figure is seen at 2.6% vs. 2.8% prior. This is already below the Fed’s forecasts of 2.8% Core PCE Y/Y for 2024.

Moreover, we got a miss in jobless claims with initial claims “spiking” to the highest level since August 2023. Now, this might have been just a blip as George Pearkes, analyst at Bespoke Investment Group, pointed out below.

So, if the risk sentiment soured due to the higher claims, then it might be wrong footed. Moreover, one week doesn’t make a trend and we have already experienced such spikes that eventually were revised a week later. So, although we shouldn’t be complacent, we can’t even base everything on just one jobless claims report.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Crude oil price forecast

Crude oil price outlook: key levels to watch amid bearish controlIf you’re...

The technical levels in play for the trading week for the major currency pairs.

EURUSD: GBPUSD:USDJPY:USDCHF:AUDUSD:NZDUSD: This article was written by Greg Michalowski at www.forexlive.com.

Newsquawk Week Ahead: US election, Fed, BoE, RBA, US ISM Services PMI and Canada jobs

Mon: Japanese Holiday: Culture Day. Eurogroup Meeting, EZ Manufacturing PMI Final (Oct),...

Singapore Purchasing Managers Index fell from previous 51 to 50.8 in October

Singapore Purchasing Managers Index fell from previous 51 to 50.8 in October