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📰Today we have US PCE data, this is without a doubt the most important data point to determine what the FED is going to do going forward.
Why is PCE data so important you might ask?
📰Let us clarify that for you; Previously the FED has made it clear that PCE data is their preferred gauge of inflation. The data in June showed that it jumped to its highest 12-month gain in more than 40 years as per the Bureau of Economic Analysis. It was also evident in the recent FED meeting minutes that this metric is a point of focus in regard to future policy.
📰If PCE shows a peak in July and begins to trend lower from here we can expect risk appetite to increase and potentially even form a bottom in terms of a potential FED policy shift. Conversely when PCE has not peaked the FED will continue to tighten which will be bearish risk.
Why is PCE data so important you might ask?
📰Let us clarify that for you; Previously the FED has made it clear that PCE data is their preferred gauge of inflation. The data in June showed that it jumped to its highest 12-month gain in more than 40 years as per the Bureau of Economic Analysis. It was also evident in the recent FED meeting minutes that this metric is a point of focus in regard to future policy.
📰If PCE shows a peak in July and begins to trend lower from here we can expect risk appetite to increase and potentially even form a bottom in terms of a potential FED policy shift. Conversely when PCE has not peaked the FED will continue to tighten which will be bearish risk.
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