Anticipation builds for upcoming PCE report

The core PCE Price Index, excluding food and energy, is crucial for Federal Reserve policy

By Farah Mourad | 28 June 2024

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Market open
  • Consumer prices in Tokyo rose to 2.3% in June

  • The Yen continues to weaken

  • Revised UK GDP figures spark optimism

Revised UK GDP Figures Spark Optimism

  • Quarterly GDP (Q1):
    • Actual: 0.7%
    • Forecast: 0.6%
    • Previous: -0.3%
  • Yearly GDP (Q1):
    • Actual: 0.3%
    • Forecast: 0.2%
    • Previous: -0.2%

Currency Market

  • GBP/USD: The British Pound is bouncing back against the US Dollar following the upbeat GDP report.
  • USD/JPY: The Yen continues its slide, edging closer to 161 JPY per USD. Japan's unemployment rate holds steady at 2.6% for May, matching expectations.
  • Tokyo Inflation: Consumer prices in Tokyo climbed slightly more than anticipated in June, hitting 2.3% compared to May's 2.2%. Core CPI also rose to 2.1%, surpassing the forecast of 2.0% and May's 1.9%.

Gold Market

  • Gold prices took a dip early Friday after encountering resistance at $2,330. Traders are now eyeing the upcoming US Personal Consumption Expenditure (PCE) inflation data to gauge the next move.

Anticipated PCE Inflation Data

  • The core PCE Price Index, which excludes volatile food and energy prices, is crucial for Federal Reserve policy.
    • Monthly Increase (May): Predicted to rise by 0.1%, down from April's 0.2%.
    • Annual Growth: Projected at 2.6% for both core and headline PCE.

Oil Market

West Texas Intermediate crude prices are climbing, approaching $82.00. This surge is driven by supply concerns amid rising tensions in the Middle East, marking the third straight session and week of gains.

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