US Core PCE In Focus
It’s been a stunning week for the US Dollar with the greenback on curse to close out its biggest weekly gain since June 2021. A hawkish FOMC meeting, teeing up a March rate hike, followed by a bumper quarterly GDP reading has week and truly reignited demand for the Dollar. Traders will now be looking to see if the Dollar can end the week on a high with the release of today’s core PCE data.
The data, which is used by the Fed as its primary inflation gauge is set to confirm rising price pressures with the market looking for a 0.5% reading. Any advance on this will no doubt add further fuel to the current USD rally. Conversely, it would likely take a dramatic miss (highly unlikely) to see any USD reversal.
Where to Trade US Core PCE?
USDCHF
The rally off the .9095 lows has seen the market breaking back into the bull channel with price recently clearing the .9288 highs. With both MACD and RSI bullish and the retail market heavily short, there is plenty of room for further upside here. Look for a break of .9356 to target .9439 initially and the channel top above.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.