Will Friday's PCE Inflation Release Raise Traders' Bets On Further Fed Rate Hikes?
Portfolio Pulse from Piero Cingari
The personal consumption expenditure (PCE) price index, the Federal Reserve's favored gauge of inflation, will be announced on Friday, May 26. Economists estimate that the headline PCE will edge up to 4.3% YoY in April, up from 4.2% in March. Investors' expectations for Fed rate rises have risen lately, with the market expecting a rate rise at the June meeting with a likelihood of little less than 40%, which increases to 66% for the July meeting.
May 25, 2023 | 4:34 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) is on track to notch its third consecutive week of gains as the dollar index (DXY) strengthens.
The article mentions that the dollar is trading at its highest level in over 10 weeks, and the yield on the two-year Treasury note has increased for ten consecutive sessions, returning to mid-March levels. This indicates a strengthening dollar, which is positive for the Invesco DB USD Index Bullish Fund ETF (UUP). As the PCE inflation report is expected to show an increase in inflation, this may further support the dollar and UUP in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50