As the release of inflation data from the United States approaches this evening, financial markets are showing relative stability. Investors are on the lookout for the Personal Consumption Expenditures (PCE) data, which the Federal Reserve closely monitors to gauge inflation and guide its monetary policy decisions.
Previously, the market received a series of important data from the US, including economic growth (GDP) figures and weekly unemployment claims, which had provided some support to the US Dollar (USD).
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According to Trading Central:
- The PCE inflation data for the US will be released at 19:30 WIB; forecast is 2.8% compared to the previous −2.8%.
GOLD
Gold prices were unable to maintain their upward trend during the European session and saw a slight correction down to $3,406 due to profit-taking ahead of the US inflation data release. If the PCE data remains high around 2.8%, pressure on gold may persist into the evening.
OIL
Oil prices fluctuated within a limited range of $64.40 – $63.99 during the European session. Market sentiment is still clouded by a declining outlook for energy demand in the US over the summer and ongoing geopolitical tensions between Russia and Ukraine. With various catalysts at play, price volatility for oil is expected to remain quite high tonight.
EURUSD
EURUSD strengthened to 1.1690 during the European session, bolstered by economic data from the Eurozone and expectations of a more dovish stance from the Federal Reserve. However, tonight’s release of the PCE data could heighten volatility, as it serves as a significant indicator for US interest rates.
GBPUSD
After strengthening for three consecutive days, GBPUSD corrected to 1.3455 during the European session. This decline coincided with the strengthening of the US Dollar ahead of the inflation data release. The volatility of this currency pair is expected to increase tonight, as the PCE data will play a crucial role in shaping the Federal Reserve’s future policy moves.
USDJPY
USDJPY regained strength during the European session after experiencing a sharp decline earlier. The level of 147.198 was noted as the peak this afternoon, supported by the strengthening of the US Dollar ahead of the inflation release. Should US inflation remain elevated, USDJPY may continue to rise tonight.
NASDAQ
The Nasdaq index weakened to 23,611 during the European session, pressured by profit-taking from market participants ahead of crucial US data. The volatility of this index is anticipated to significantly increase, especially since the PCE inflation figures will guide the Federal Reserve in determining its upcoming monetary policies.
