What Is the Core PCE Price Index?

The Core PCE came in at 2.5% year-over-year. This figure is fully in line with market expectations and indicates a slight decline compared to the previous reading of 2.7%.

The fact that it is getting closer to the Fed’s inflation target of 2% shows that the tight monetary policy is having an effect. Especially during a period of increasing expectations for rate cuts, such data is highly important for market direction.

How Did the Market React?

The data coming in line with expectations was not a surprise for the markets. As a result, limited movements were observed in the dollar index initially, while partial recoveries were seen in gold and cryptocurrency markets. Expectations for rate cuts remain cautiously intact.

As core inflation in the US continues its downward trend, the possibility of a rate cut by the Fed later in the year remains on the table. However, this slow progress in the data indicates that a “cautious approach” will likely continue.

Why Is the PCE Data Important?

Core PCE is the inflation gauge that the Fed primarily uses in shaping its interest rate policies. By excluding food and energy prices, this index reflects the underlying trends in inflation. That’s why investors closely monitor this data to determine direction in the dollar, stocks, gold, and especially the cryptocurrency markets.

This content does not constitute investment advice. Markets involve high risk, and it is important to conduct your own research before making investment decisions.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Core PCE Price Index in the US Announced! appeared first on Coin Engineer.

Monday, November 25

• 1INCH Token Unlocking: 1INCH tokens amounting to $27 million (representing 4.95% of total supply) will be unlocked. Such a large unlocking event could lead to price volatility as these tokens become available for trading.

Tuesday, November 26

• FOMC Meeting Minutes: At 22:00 UTC, the minutes from the Federal Open Market Committee (FOMC) meeting will be released. These minutes can provide clues on future interest rate changes and the Fed’s stance on inflation and economic growth.
• Starknet Staking Launch: Starknet, a Layer 2 scaling solution for Ethereum, will launch its staking service. Users can now stake tokens to earn passive income and support the network’s security.
• DYDX Token Unlocking: 9 million USD worth of DYDX tokens (representing 0.63% of the total supply) will be unlocked. The market may see volatility as the tokens enter circulation.
• ADA Token Unlocking: 20 million USD worth of ADA tokens (representing 0.04% of the total supply) will be unlocked. Investors should watch for potential price movements in Cardano.

Wednesday, November 27

• US GDP Data: At 16:30 UTC, the US Gross Domestic Product (GDP) data will be released. Analysts expect a 2.8% growth rate, providing insight into the health of the US economy.
• Core PCE Index: The Core Personal Consumption Expenditures (PCE) index will be released at 18:00 UTC. This is a key inflation indicator in the US and can influence the Fed’s decisions on monetary policy.
• ENA Token Unlocking: 9 million USD worth of ENA tokens (representing 0.08% of the total supply) will be unlocked, potentially affecting market dynamics.

Thursday, November 28

• US Markets Closed for Thanksgiving: US markets will be closed in observance of Thanksgiving Day, which can reduce trading volume and lead to a quieter day for global markets.
• FLOKI Valhalla Update: The FLOKI token will undergo a Valhalla mainnet upgrade, adding new features and improving transaction speeds. This could boost the project’s ecosystem.

Friday, November 29

• Eurozone CPI Data: At 13:00 UTC, the Eurozone Consumer Price Index (CPI) data will be released. This will indicate inflation levels in the Eurozone, influencing European Central Bank policies.
• EDU Token Unlocking: 11 million USD worth of EDU tokens (representing 1.92% of the total supply) will be unlocked, likely causing a shift in the EDU market.

Saturday, November 30

• OP Token Unlocking: 53 million USD worth of Optimism (OP) tokens (representing 0.56% of the total supply) will be unlocked. The release could result in a market impact for OP tokens.

Sunday, December 1

• SUI Token Unlocking: $230 million worth of SUI tokens (representing 0.64% of the total supply) will be unlocked. The large volume of unlocked tokens could affect the price and liquidity of SUI.

This week, major token unlockings and economic data releases are set to influence the markets. The FOMC and PCE data are particularly important for gauging future interest rate policies. Additionally, Starknet and FLOKI will see important upgrades and new services, potentially advancing the Web3 ecosystem. These developments could lead to both opportunities and risks for cryptocurrency investors.

Keep a close watch on the market as these events unfold, especially given the significant token unlockings and economic indicators that will provide clues to the future of both traditional and digital finance.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Weekly Crypto and Economic Events: November 25 – December 1, 2024 appeared first on Coin Engineer.

Attention is sharply fixed on the Core Personal Consumption Expenditures (PCE) Price Index, which will be announced at 15:30 local time. This indicator, which measures consumer spending on goods and services, is published monthly by the U.S. Department of Commerce.

Known for being a key gauge of inflation for the Fed, the core PCE is expected to show a 2.7% annual increase. This data is anticipated to influence the Fed’s decision on whether to implement a 25 or 50 basis point rate cut in September.

Analysts from TD Securities have suggested that the core PCE inflation is likely under control, given that July saw a modest monthly increase of just 0.13%. They predict that the core PCE will not experience a significant rise.

A higher-than-expected core PCE figure, whether on a monthly or annual basis, could undermine the possibility of a more aggressive rate cut by the Fed, potentially impacting Bitcoin negatively in the short term.

Looking ahead, analysts point out that the Fed’s primary focus will shift to the employment figures set to be released next Friday. Following this, markets will get the inflation data on September 11, with the Federal Reserve’s interest rate decision scheduled for September 18.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Markets Focused on the Fed’s Key PCE Inflation Data appeared first on Coin Engineer.

A report released by the US Commerce Department on Friday indicated a slight slowdown in consumer spending last month. The easing price pressures and cooling labor market could bolster the Fed’s confidence that inflation is moving towards its 2% target.

The Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, rose 0.1% in June, following a flat reading in May. This suggests that inflationary pressures may be easing.

“The key question now is whether the positive momentum we’ve seen over the last three months will continue through to the September meeting,” said Olu Sonola, chief US economist at Fitch Ratings. “While the Fed will have one eye on recent labor market developments, it’s likely to use the upcoming meeting to set the stage for a rate cut in September.”

Kathy Bostjancic, chief economist at Nationwide, noted that the improving inflation data suggests that the surge in inflation seen in the first quarter was transitory. “Moreover, if rent inflation has finally peaked as the latest data suggests, then inflation appears to be returning to a more sustainable downward trend,” she said.

As demand in the economy has cooled in response to the Fed’s aggressive monetary policy tightening in 2022 and 2023, the pace of economic growth has slowed. While the economy grew at an average annual rate of 2.1% in the first half of this year, it expanded at a 4.2% pace in the second half of 2023.

Economists at Bank of America Securities estimate that approximately $400 billion of excess savings accumulated during the COVID-19 pandemic remains, but at the current pace of depletion, it could be exhausted by the end of the year.

“Elevated savings have been supporting consumer spending and likely encouraged more saving for precautionary reasons,” said Veronica Clark, an economist at Citigroup. “But overall spending seems to be slowing more than income, which is consistent with lower saving. Conversely, a very low savings rate could signal the risk of a sharper decline in spending as the labor market weakens.”

In the comment section, you can freely share your comments about the topic. Additionally, don’ t forget to follow us on Telegram, YouTube, and Twitter for the latest news and updates.

The post US Inflation Data Signals Potential Fed Rate Cut appeared first on Coin Engineer.

The PCE index is a key inflation indicator that the Fed uses to set monetary policy. The latest data showed:

Core PCE Price Index (Year-over-Year): 2.6% (expected 2.5%, previous 2.6%)

Core PCE Price Index (Month-over-Month): 0.2% (expected 0.2%, previous 0.1%)

Personal Consumption Expenditures Price Index (Year-over-Year): 2.5% (expected 2.5%, previous 2.6%)

Personal Consumption Expenditures Price Index (Month-over-Month): 0.1% (expected 0.1%, previous 0.0%)

Interest Rate Cut Expectations Rise

The relatively benign inflation data has fueled speculation that the Fed may begin cutting interest rates as early as September. The CME FedWatch Tool currently assigns a 93.3% probability to the Fed keeping rates unchanged in July, but an 87.7% probability to a rate cut in September.

Bitcoin Reacts Positively

The prospect of easier monetary policy has been generally positive for risk assets like Bitcoin. Investors view lower interest rates as potentially boosting demand for riskier assets like cryptocurrencies. This sentiment has contributed to Bitcoin’s recent price rally.

The post Recent PCE Data and Its Impact on Bitcoin appeared first on Coin Engineer.

The U.S. Federal Reserve (FED) has released the latest Personal Consumption Expenditures (PCE) data, a key inflation gauge that the FED monitors closely when making interest rate decisions.

The PCE data for April is as follows:

• Core Personal Consumption Expenditures Price Index (YoY): Reported at 2.8%, in line with the expected 2.8%, and unchanged from the previous 2.8%.
• Core Personal Consumption Expenditures Price Index (MoM): Reported at 0.2%, slightly below the expected 0.3%, and the previous 0.3%.
• Personal Consumption Expenditures Price Index (YoY): Reported at 2.7%, meeting the expected 2.7%, and unchanged from the previous 2.7%.
• Personal Consumption Expenditures Price Index (MoM): Reported at 0.3%, in line with the expected 0.3%, and unchanged from the previous 0.3%.

The stability in the annual and monthly PCE indices reflects a steady inflation environment, which could influence the FED’s forthcoming decisions on interest rates. The Core PCE, excluding volatile food and energy prices, also remained consistent with expectations, reinforcing a stable inflation outlook.

Related: FED’s John Williams Predicts Inflation Decline in 2024

Investors are keeping a close watch on these economic indicators, as they play a critical role in shaping the monetary policy landscape. The sustained volatility in Bitcoin’s price underscores the market’s sensitivity to macroeconomic data and the broader economic climate.

Bitcoin’s current position above the $68,000 mark is a positive signal for the market, but continued scrutiny of economic data and regulatory decisions will be crucial in determining its future trajectory. As the FED analyzes these inflation metrics, investors remain cautiously optimistic about the potential for further gains in the cryptocurrency market.

The post Bitcoin Surges as FED Releases PCE Data appeared first on Coin Engineer.