Home Forex Markets U.S. PCE inflation hits a year high in June, USD/JPY rebounds to test 134

U.S. PCE inflation hits a year high in June, USD/JPY rebounds to test 134

by WOOWinvest
0 comment
U.S. PCE inflation hits a year high in June, USD/JPY rebounds to test 134


Abstract: The annual rate of PCE inflation, which is favored by the Fed, was recorded at 6.8%, a new high for the year; after the data was released, the USD/JPY rebounded to test 134.

The U.S. Personal Consumption Expenditure (PCE) price index rose 6.8% year-on-year in June, a new high for the year (6.6% in March), and a month-on-month increase of 1%, slightly higher than the forecast of 0.6%.

The core PCE price index excluding food and energy rose 4.8% year-on-year, up from 4.7% in May, and up 0.6% month-on-month, up from 0.3% in May.

At the same time, Canada announced the initial monthly GDP growth rate of 0.1% in June. After the data was released, the USD/CAD fluctuated little in the short term.

U.S. PCE inflation hits a year high in June, USD/JPY rebounds to test 134

U.S. PCE inflation hits a year high in June, USD/JPY rebounds to test 134

Chart provided by DailyFX

Note that personal consumption expenditures are the largest component of U.S. GDP, and the PCE price index, a price index constructed from a range of goods and services in this part, is a favored inflation indicator by the Federal Reserve. Federal Reserve Chairman Jerome Powell said at a monetary policy news conference on Thursday that inflation risks will continue to be highly valued and the pace of future rate hikes will depend on data. PCE inflation rebounded to a new high this year, which may increase the Fed’s hawkish expectations to a certain extent, but now the focus of the market is on recession fears and its impact on the economy and financial markets.

The negative GDP growth in the second quarter of the United States officially entered the United States into a “technical recession. It is worth noting that the annualized quarterly rate of GDP of -0.9% has only entered the negative territory slightly. In view of this, Fed official Bostic said that he does not think The U.S. is in recession. But the market’s fears of a recession haven’t dissipated. Bostic said widespread fears of a recession could lead to a recession.

After the release of the data, the yield on the 2-year U.S. Treasury bond rose and fell, inverting 21 basis points from the 10-year bond. USD/JPY tested 134, rebounding more than 1% from the intraday low. Notably, the rate has broken below the March support line and the July high could be a top.

USD/JPY 30 minute chart

U.S. PCE inflation hits a year high in June, USD/JPY rebounds to test 134

The content on this page is for general market commentary only and may not constitute investment advice of any kind (tax, legal, accounting). This article does not constitute an invitation or recommendation for direct investment in specific financial products. The content is for reference only. Readers should not rely on the information in this document, nor should its actions and omissions be relied upon. We are not responsible for the results of any person’s actions or omissions based on this article. We make no warranties as to the accuracy of the content provided or the adequacy of the information. This article is not intended for distribution within the territory of the People’s Republic of China (excluding Hong Kong, Macau and Taiwan for this purpose), except as permitted by the applicable laws of the People’s Republic of China.

Copyright Notice: Except for the purpose of viewing the information on this website, or as permitted by applicable law or these terms and conditions, no one may copy, use, upload, link, or publicly perform in any way to third parties without our specific written permission , publish or transmit any information or content on this website. We reserve the right to further investigate the legal responsibilities of the relevant actors for the infringing acts of unauthorized reprinting. If you have business cooperation needs such as market promotion and resource exchange, please contact us.

element inside the element. This is probably not what you meant to do! Load your application’s JavaScript bundle inside the element instead.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy