Markets price in future rate cuts and eye PCE

Market activity becomes subdued in anticipation of PCE data scheduled for release this Friday.

By Nadia Elbilassy | @Nadia Elbilassy | 25 March 2024

Market open
  • Federal Reserve signals of potential rate cuts boosted gold prices, but other central banks' accommodative stance led to a drop, favoring the dollar.

  • The dollar index stabilized at 104.34, after a 1% weekly gain.

  • The yen rose slightly higher at 151.24 per dollar, near a four-month low.

On the Market Watch:

Rate Cuts

Signals indicating potential interest rate cuts by the Federal Reserve, boosted gold prices last week. However, towards the week's end, gold saw a significant drop from its peak levels as other central banks hinted at a more accommodative stance, prompting investors to favor the dollar as the primary high-yield, low-risk currency.

The dollar index is currently stable at 104.34, following a weekly increase of nearly 1% last week.

In other currencies, the yen saw a slight increase for the day, standing at 151.24 per dollar. It had previously reached a four-month low of 151.86 last week, bringing it close to a 32-year low near 152 per dollar recorded in 2022.


Investors focus on Personal consumption expenditures data, the Federal Reserve's preferred measure of inflation, which is scheduled for release this Friday.

Despite a significant decrease in U.S. inflation over the past year amid elevated interest rates, it still exceeds the Fed's annual target of 2% by a considerable margin. This ongoing trend continues to be a significant concern for the central bank.