US Dollar: PCE Inflation Eases USD Pressure, Traders Eye OPEC+ Meeting

This report provides a comprehensive analysis of the current market fundamentals affecting the US dollar (USD), examining fiscal policy, economic indicators, and monetary policy developments.

FXStreet17:47 ET

The Federal Reserve needs more evidence to confirm that the path to cooling inflation is unlikely to cut interest rates in the short term

This week, Federal Reserve officials received evidence that inflation continues to fall (albeit fluctuating), but policymakers are unlikely to change their positions where more evidence is needed. The Zhitong Finance App learned that government data released on Friday showed that the basic inflation index preferred by the Federal Reserve cooled down last month, and the growth rate was the slowest since this year. Additionally, consumers cut spending in April as the economy grew slower than expected in the first quarter. These reports paint a picture of a moderate economic slowdown, which is what policymakers want to see, and dispels concerns about a renewed acceleration in price growth. But officials may look for it after the next few weeks of meetings

Zhitong FinanceMay 31 19:00 ET

Oil prices fall as Federal Reserve officials hint they won't cut interest rates

Remarks by Federal Reserve officials about keeping interest rates stable led to a drop in oil prices. U.S. gasoline inventories increased by 2 million barrels, indicating a decline in demand. OPEC+ negotiations will extend sharp production cuts to 2025 and stabilize the market.

FX678 FinanceMay 31 06:31 ET

Will the Federal Reserve's favorite inflation indicator reach a 3-year low?

After the CPI cooled down in April, the progress of US inflation was tested again by key data. Today at 20:30 Beijing time (8:30 a.m. EST), the US Department of Commerce will release PCE data for April. The market currently expects the overall PCE price index to rise 0.3% month-on-month in April, in line with the previous value, and is expected to remain flat at 2.7% year-on-year. The core PCE price index rose 0.3% month-on-month, in line with the previous value. The core PCE price index is expected to remain flat at 2.8% year over year. If the year-on-year increase slows slightly, then the core PCE price index will be the one since April 2021

wallstreetcnMay 31 04:23 ET

US Core PCE Inflation Set to Steady as Federal Reserve Rate Cut for September Hangs in the Balance

The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in April.

FXStreetMay 31 02:00 ET

Federal Reserve officials expect inflation to continue to fall in the second half of the year, and interest rate hikes are unlikely

New York Federal Reserve Chairman Williams said he expects inflation to continue to fall in the second half of this year, and interest rate hikes are unlikely. He expects inflation measured by PCE to fall to around 2.5% by the end of this year, and close to 2% next year. He was unable to explain when he might support interest rate cuts, stressing that this depends on upcoming economic data, and that the policy path is being adjusted as the outlook changes.

FX678 FinanceMay 30 22:35 ET