US Core PCE Inflation Preview: US Dollar selling opportunity? Three reasons to expect a slide

Economists expect the United States Core Personal Consumption Expenditure to have risen by 0.4% in January. Shoppers’ adjustments to rising prices imply a lower outcome. A small sign of slower inflation may trigger profit-taking on US Dollar longs. Robust Personal Income and Personal Spending figures would help stocks, also weighing on the Greenback. It ain’t over until the Federal Reserve (Fed) gets its favorite inflation figure – and any 0.1% can make a difference. The Personal Consumption Expenditure (Core PCE) report is published after the Consumer Price Index (CPI) one, this month on Friday, February 24 at 13:30 GMT. Nevertheless, PCE is what the world’s most powerful central bank targets – especially the core figure. Core PCE and the accompanying Personal Income and Personal Spending reports may turn into a US Dollar downer. Here are three reasons why. 1) High PCE inflation expectations may lead to disappointment Economists expect Core PCE to come out at 0.4% MoM in January, above 0.3% reported in December. These estimates are based on the upbeat Core CPI report, which showed an increase of 0.4%. Core PCE has been more stable than Core CPI: Makes sense? Not exactly. The Personal Consumption Expenditures formula is […]

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