Pay Attention To US GDP Numbers And PCE inflation

The euro edged lower last week after European Central Bank officials sent mixed policy signals, while expectations of a 50 basis point rate hike from the Federal Reserve supported the U.S. dollar which briefly hit a new 25-month high

U.S. Federal Reserve Chairman Jerome Powell said last week that a 50 basis-point rate hike was on the table at the central bank’s next meeting in May 2022. His remark, although largely consistent with market expectations, saw five-year U.S. yields climb above 3% for the first time since 2018 and eased a rally in the euro.

On the other hand, ECBs di Guindos commented that a July hike was on the table. 

Looking ahead, this week’s calendar features U.S. data on GDP growth, Durable Good Orders, and PCE inflation. 

US GDP number will be published on Thursday.

Core Durable Goods Orders, excluding transportation, are expected to come out at 0.6% in March.

The US will publish updates on consumer spending and the Federal Reserve’s preferred inflation gauge on Friday, which will give fresh insight into the strength of the economy. 

The Core PCE price index is expected to rise by 0.3% in March. Year on year, economists forecast a 5.3% rise.

25 Apr 22 (Mon)

05:43 am