Euro steady at multi-month highs as US PCE Inflation disappoints
The post Euro steady at multi-month highs as US PCE Inflation disappoints appeared on BitcoinEthereumNews.com.
The Euro remains steady at mid-term highs as US inflation and spending data disappoint. US PCE inflation eases beyond expectations and cements hopes of Fed cuts in early 2025. Better-than-expected US Durable Goods Orders are keeping the Greenback from a deeper depreciation. The Euro (EUR) is trading higher after an initial reversal following mixed US data. The pair remains steady at fresh four-month highs above 1.1010 at Friday’s United States (US) session opening, with the Dollar weighed by the weak US Personal Consumption Expenditures (PCE) Prices Index and Personal Spending data. The Pair spiked lower immediately after the data release, as the better-than-expected US Durable Goods orders report provided an initial boost to the Dollar. The immediate reaction, however, lost momentum afterward, as the market acknowledged that these figures increase the odds for Federal Reserve (Fed) cuts in early 2024. Data released on Thursday showed that the US economy grew at a slower pace than previously estimated in the third quarter. These figures came accompanied by weaker manufacturing data and signs of easing inflation, which are consistent with the theory of a soft landing ahead. Daily digest market movers: US PCE Inflation and Spending data adds pressure on the USDollar US PCE Prices Index contracted against expectations in November, with the year-on-year rate easing to 2.6%, below the 3.8% market consensus, from 3% in the previous month. The Core PCE increased 0.1%, steady from the previous month, and 3.2% on the year, following a 3.5% reading in October. The market had anticipated 0.2% and 3. 3% readings respectively US Personal Spending grew at a 0.2% pace from 0.1% in October, below the consensus 0.3% reading. On the positive side, US Durable Goods Orders beat expectations with a 5.4% increase in November, following a 5.1% decline in October. Market analysts expected a more moderate 2.2% growth. On Thursday,…
Filed under: News - @ December 22, 2023 8:08 pm