The post Market optimism prevails in the lead-up to US PCE inflation appeared on BitcoinEthereumNews.com.

Here is what you need to know on Friday, September 27: Risk-on sentiment seen in global markets on Thursday extends into Friday, as a raft of Chinese stimulus measures continue to lift investors’ confidence. The People’s Bank of China (PBOC)  finally lowered the reserve requirement ratio (RRR), the required minimum capital banks must hold in reserve, by 50 basis points (bps), effective from Friday. The Chinese central bank also cut the seven-day repo rate to 1.5% from 1.7%. Despite the risk-rally in Asian indices and higher US S&P 500 futures, the US Dollar is looking to build on the overnight recovery, fuelled after a brief dip in early opening hours following the dovish remarks from US Federal Reserve (Fed) Governor Lisa Cook. Cook said that she “wholeheartedly supported 50 bps rate cut,” adding that the “normalization of economy, particularly of inflation, is quite welcome.” The Greenback suffered on Thursday, as the European and Wall Street stocks advanced on rate-cut momentum while the mixed US Jobless Claims and Durable Goods Orders data failed to inspire USD buyers. Several Fed policymakers made their scheduled appearances on Thursday, including Fed Chair Jerome Powell. However, only two of them spoke on monetary policy. Fed Governor Cook supported the 50 bps rate cut move in September while Governor Michelle Bowman stuck to her hawkish rhetoric. Markets are currently pricing in about a 50% chance of a 50 basis points (bps) rate reduction by the Fed in November, according to the CME Group’s Fed WatchTool, down from over 60% seen a day ago. The next directional move in the USD hinges on the upcoming US core Personal Consumption Expenditures (PCE) Price Index, the Fed’s most preferred inflation gauge, which could affirm bets of an outsized next rate cut. Additionally, the quarter-end flows could come into play and…

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Filed under: News - @ September 27, 2024 6:14 am