The activity in the foreign exchange market wrapped up on a lackluster note, failing to establish any clear direction. The highlight of the week was the release of the Core Personal Consumption Expenditure (PCE) Price Index. Excluding food and energy, it increased by 0.4%, surpassing the anticipated 0.3% month-over-month increase.

This uptick pushed the annual Core PCE to 2.8%, compared to a forecast of 2.7%. This data is essential as it gauges price changes for goods and services that consumers purchase for personal use, providing insight from the consumer’s perspective.

This key inflation indicator exceeded market expectations, reinforcing the belief that the Federal Reserve is unlikely to lower interest rates in the near term.

Fed officials have previously stated they plan to cut interest rates twice this year.

At the same time, consumer behavior indicates a more conservative approach, as spending has decreased while savings have increased.

The effects of tariffs are beginning to take hold, with estimated data showing that inflation expectations for the next year have........

© Business Recorder