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 drops to around 108.5.From a technical perspective, the daily chart suggests the formation of the right shoulder of a head-and-shoulders pattern, but 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 Q1 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 the lookout for sudden price movements caused by position unwinding.

Past Market Reports

1. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 13.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 07.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran