Attention on the U.S. Core PCE Deflator

Attention on the U.S. Core PCE Deflator

30.04.2021

Yesterday, stock prices were mixed in European markets but rose in U.S. markets, resulting in a market environment characterized by rising stock prices, a weaker dollar, and higher interest rates. The U.S. initial jobless claims figure released yesterday fell for the third consecutive week to 553,000, which was also well received. While the U.S. dollar has pulled back, gold has not risen and is trending lower, currently trading around $1,767.

In the foreign exchange market, the U.S. dollar rose yesterday alongside a rise in the yield on 10-year U.S. Treasuries, but it has been losing momentum during today’s Asian trading session. The USD/JPY pair is currently trading around 108.8, but support remains firm as buying interest is expected to emerge if the pair falls to around 108.5.From a technical perspective, the daily chart suggests the formation of the right shoulder of a triple top pattern. However, depending on today’s interest rate movements, there is a possibility of a break above 109.2, so caution is warranted.

Today, at 2:30 PM, France will release its Consumer Price Index (flash estimate) and Producer Price Index; at 4:00 PM, SNB Governor Jordan will deliver remarks; at 6:00 PM, the Eurozone will release its Consumer Price Index (flash estimate) and first-quarter GDP (flash estimate);at 9:30 PM, Canada’s GDP, U.S. personal income, U.S. personal spending, and the U.S. core PCE deflator; at 10:45 PM, remarks by U.S. Federal Reserve Bank of Dallas President Kaplan; and at 11:00 PM, the U.S. University of Michigan Consumer Price Index (final reading). As this is the last day of the month, we should be on guard for sudden price movements caused by position unwinding.