US dollar trades flat to slightly lower in the aftermath of the PCE report.
The US Dollar (USD) is holding stable in a fairly tight range following the release of the US Personal Consumption Expenditures (PCE) Price Index data. The greenback is fluctuating around 104.00, but it appears unable to break free from the level in any direction. Markets appear to be in a wait-and-see mode, with March’s real central bank rate decisions providing more clarity on where the US Dollar should trade. On the economic front, the Kansas Fed Manufacturing Activity report for February will provide some light data. There are three, if not four, US Federal Reserve speakers scheduled to speak on current monetary policy. Christopher Waller, President of the St. Louis Fed, called for three rate cuts this year in an overnight statement.
Daily market movers: Easing
At 13:30 GMT, the Jobless Claims and Personal Consumption Expenditures Price Index were released:
At 13:30 GMT, the Jobless Claims and Personal Consumption Expenditures Price Index were released:
Jobless Claims for This Week:
Weekly first jobless claims increased from 202,000 to 215,000.
Continuing jobless claims increased from 1.860 million to 1.905 million.
Personal Consumption Expenditure (PCE) Price Index for January:
The monthly headline PCE increased from 0.2% to 0.3%, as anticipated, while The annual reading increased from 2.6% to 2.4%.
For the core reading, which excludes the more volatile food and energy sectors, the monthly PCE increased from 0.2% to 0.4%. The annual core PCE increased from 2.9% to 2.8%. Both are as expected.
Personal income climbed from 0.3% to 1.0%, while personal spending decreased significantly, from 0.7% to 0.2%.
At 14:45 GMT, the Chicago Purchasing Managers Index for February dropped from 46 to 44.
At 15:00 GMT, pending home sales fell from 5.7% to -4.9%, indicating that the segment is contracting.
The Kansas City Fed Manufacturing Activity Index for February will be the final economic report released this Thursday. The previous number was -17, with no forecast in place.
A number of US Federal Reserve Speakers will also make their way to the stage.
Raphael Bostic, the head of the Atlanta Fed, is expected to make comments at 15:50 GMT.
Following Bostic, about 16:00 GMT, the head of the Chicago Fed, Austan Goolsbee, will speak.
Loretta Mester, the head of the Cleveland Fed, will also join the stage at 18:15 GMT.
Overnight, at 01:10 GMT, John Williams of the New York Fed will also give light on the start of Friday.
Equities are celebrating the in-line PCE report, which mitigates the negative impact of the red hot Consumer Price Index (CPI) report from two weeks ago. All US equity futures are up ahead of the opening bell, while European equities are up by 0.50% intraday.
According According to the CME Group’s FedWatch Tool, the chances of a Fed pause at the March 20 meeting are 97.5%, with a rate cut at 2.5%.
The benchmark 10-year US Treasury Note is trading at roughly 4.22%, near its session low.
