Core US PCE for March + 5.2% YoY vs. 5.3% expected

  • Previous was +5.4% YoY (revised to +5.3%)
  • Core PCE MoM +0.3% vs. +0.3% forecast
  • Compared to the previous month + 0.4%
  • Year-on-year contraction +6.6% vs. +6.4% previously (adjusted to +6.3%)
  • The monthly contraction is +0.9% vs. +0.6% previously

Consumer spending and income for the month of March:

  • Personal Income +0.5% vs. +0.4% expected. previous month + 0.5%
  • Personal spending +1.1% vs. +0.7% expected. previous month + 0.2%
  • Real personal spending +0.2% vs -0.4% previously

There is a lot to like here. Personal spending was strong, highlighting consumer strength. And a slight hit on core inflation would add life to the “peak” economic inflation

economic inflation

Inflation is defined as a quantitative measure of the rate at which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general price level where you actually buy a particular currency for less than in previous periods. In terms of assessing strength or currencies, and therefore foreign exchange, inflation or its measures are very influential. Inflation stems from the general creation of money. This money is measured by the level of the total money supply of a particular currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured in GDP). As such, this generates demand pressure on supply which does not increase at the same rate. Then the CPI rises, causing inflation, so how does inflation affect forex? The level of inflation has a direct impact on the exchange rate between two currencies at several levels, including purchasing power parity, which attempts to compare the different purchasing powers of each of them according to the general price level. In doing so, this makes it possible to determine which country has the most expensive cost of living, so the currency with the highest inflation rate loses its value and decreases in value, while the currency with the lowest inflation rate rises in value in the forex market. Also affected. Extremely high inflation rates drive interest rates higher, causing the currency to depreciate on foreign currencies. Conversely, very low inflation (or deflation) pushes interest rates down, causing the currency to appreciate in the forex market.

Inflation is defined as a quantitative measure of the rate at which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general price level where you actually buy a particular currency for less than in previous periods. In terms of assessing strength or currencies, and therefore foreign exchange, inflation or its measures are very influential. Inflation stems from the general creation of money. This money is measured by the level of the total money supply of a particular currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured in GDP). As such, this generates demand pressure on supply which does not increase at the same rate. Then the CPI rises, causing inflation, so how does inflation affect forex? The level of inflation has a direct impact on the exchange rate between two currencies at several levels, including purchasing power parity, which attempts to compare the different purchasing powers of each of them according to the general price level. In doing so, this makes it possible to determine which country has the most expensive cost of living, so the currency with the highest inflation rate loses its value and decreases in value, while the currency with the lowest inflation rate rises in value in the forex market. Also affected. Extremely high inflation rates drive interest rates higher, causing the currency to depreciate on foreign currencies. Conversely, very low inflation (or deflation) pushes interest rates down, causing the currency to appreciate in the forex market.
Read this term‘The argument, though, is that the deflator is up 0.9% in the month not helping.

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