US PCE figures for January were announced yesterday
• Inflation fell to 2.4% YoY.
o This is following a reading of 2.6% in December.
o This is the lowest reading since March 2021.
• Month on month PCE is currently at 0.3%.
• PCE (Personal Consumption Expenditure) is the US central banks preferred inflation measurement.
• YoY CPI currently sits at 3.11%.
• S&P 500 rise 0.3% following the PCE
announcement.
• The US Dollar saw a fall after the PCE announcement.
o This saw gold reach a 1 month high as it became cheaper for foreign investors.
• Expectations of rate cuts later in the year
o Currently the rate sits at 5.25%-5.5%