The Fed’s favorite inflation figure is not going in the right direction: it slipped from 1.4% to 1.3% y/y. Other figures are mixed: personal income beat with a rise of 0.3% while personal spending dropped by 0.3%.
The US dollar is ticking down on the releases.
The US released some figures regarding income and consumption. The most important figure for the Fed is the Core PCE price index – probably the central bank’s favorite measure of inflation.
The US dollar opened the trading week on a somewhat weaker note.
The data for December 2014:
- Personal income: exp. 0.2%. Actual: +0.3%.
- Core Personal Consumption Expenditures: exp. +0.1% m/m, last time we had 1.4% y/y. Actual 1.3% y/y.
- PCE Price Index: last was =0.2% m/m, +1.2% y/y. Actual: only 0.7% y/y.
- Personal Spending: exp. -0.2%. Actual -0.3%.
Later we have the ISM Manufacturing PMI – the first hint towards Friday’s Non-Farm Payrolls. Later in the week we have the services PMI and the ADP NFP.
More: EUR/USD wedge – where will it break to?
