Tag Archive: U.S. Core PCE Price Index (PCE Deflator)

Evolving Thoughts on Inflation

In early 2005, Greenspan said that the fact that long-term rates were lower despite the Fed's campaign to raise short-term rates was a "conundrum." Many rushed to offer the Fed Chair an explanation of the conundrum, which given past cycles may not have been such an enigma in the first place.

Read More »

FX Daily, June 30: Greenback Stabilizes

The US dollar has been battered this week amid a shift in sentiment seen in how the market responded to comments mostly emanating from the ECB's annual conference. It is not really clear that Draghi or Carney gave new policy indications.

Read More »

The Power of Oil

For the first time in 57 months, a span of nearly five years, the Fed’s preferred metric for US consumer price inflation reached the central bank’s explicit 2% target level. The PCE Deflator index was 2.12% higher in February 2017 than February 2016. Though rhetoric surrounding this result is often heated, the actual indicated inflation is decidedly not despite breaking above for once.

Read More »

FX Daily, March 30: Euro breaks down against CHF and USD

The EUR/CHF broke down under 1.07. The euro lost against both dollar and franc.

Read More »

FX Daily, October 31: Respite for Market Nerves Lifts Peso, Rand, and US Dollar

he latest US political news before roiled thin pre-weekend markets, but cooler heads and more of them are prevailing today. Trump's fortune in the polls had bottomed prior to the re-opening of the investigation into Clinton's emails and the national polls have narrowed.

Read More »

FX Daily, September 30: SNB Intervenes to Polish Q3 Results

True to its recent habit, the US dollar is finishing the week on a firm note. On the month, though, the greenback has fallen against most of the majors, but sterling, the Canadian dollar, and the Swedish krona. Global equities are trading heavily, and investors' angst is lending support to bond markets.

Read More »

FX Daily, September 29: Dollar Quietly Bid, while Market is Skeptical of OPEC Deal

The US dollar has firmer against most major and emerging market currencies. It remains well within its well-worn ranges, which continue to be narrow. A notable exception today is the yen's weakness. While the majors are mostly off marginally and now more than 0.3%, the yen is 0.75% lower. That puts the greenback at a six-day high (~JPY101.75) at its best.

Read More »

FX Daily, August 29: Dollar Gains Extended, but Momentum Fades

The US dollar staged a strong pre-weekend rally on hints that the Fed will raise rates before the end of the year. There was initially follow through dollar buying in Asia before a more stable tone emerged in Europe, where London markets are closed for a bank holiday. The easing of the dollar’s upside momentum may set the stage for a bout of profit-taking later today and tomorrow.

Read More »

FX Daily, July 29: Kuroda Hesitates, Yen Advances, Focus Turns to Europe and North America

Main events: Far Lower GDP Growth due to higher inflation and bigger trade deficit. Yen and Swissie advance and weaker dollar. Swiss economy remains on track based on the KOF economic barometer.

Read More »

FX Daily, June 29: Fragile Calm Ahead of Quarter-End

Sterling is firmer, but quarter-end considerations seem to be the key driver. Poor Japanese retail sales keep focus on policy response likely next month. New Zealand and Australian dollars are leading today's advance against the US dollar.

Read More »