Happy Tuesday, dear traders! Here’s what we follow:
What to expect from monthly Core PCE Index?
Information is not investment advice
What to expect from monthly Core PCE Index?
Personal Consumption Expenditures (PCE) Index is the same as Consumer Price Index (CPI). The only difference between them is that CPI excludes foods and energy.
What will happen?
Personal Consumption Expenditures (PCE) Index is the same as Consumer Price Index (CPI). The only difference between them is that CPI excludes foods and energy. Food and energy can take up to 25% of PCE, but they are highly seasonal. Without these volatile components PCE is considered as more accurate indicator of inflation.
Why is it important?
Traders keep a close watch on it because of the rumors, that this is Fed’s favorite inflation measure. Nevertheless, CPI is released about 10 days earlier and tends to garner most of the attention. A couple months ago, higher-than-planned results caused several big movements.
How to trade PCE Price Index?
The results will have an impact on all USD pairs.
If it turns out to be higher-than-expected, the USD will rise.
- Otherwise, USD will fall.
Check the economic calendar
Instruments to trade: USD/JPY, USD/CAD, USD/CHF.
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The most impactful releases of this week will fill the market with volatility and sharp movements.
Happy Tuesday, dear traders! Here’s what we follow:
Labor Market and Real Estate Market data was published yesterday. Markets are slowing down, so the economy is in recession. Today the traders should pay attention to the Retail sales in Canada.