The Fed’s preferred inflation measure is expected to show another improvement in April

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Today at 08:30 ET/12:30 GMT, we get the US April PCE price index data which is the Fed’s preferred inflation measure. This isn’t generally a strong market moving release because the data is old news given that it can be calculated pretty accurately from the CPI, PPI and import prices data.

WSJ’s FedWatcher Nick Timiraos shared on his X account the estimates from professional forecasters. The figures show another improvement in April. Again, this is already priced in, so don’t take too much out of it. Markets react more and change future expectations based on the CPI and PPI data because they are actually NEW information.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

FX option expiries for 30 May 10am New York cut

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EUR/USD

  • 1.1500 (EUR 1.10bn)
  • 1.1475 (EUR 979mn)
  • 1.1340 (EUR 810mn)
  • 1.1250 (EUR 974mn)

USD/JPY

  • 143.00
    (US$ 3.30bn)
  • 140.00 (US$ 2.38bn)

GBP/USD

  • 1.3455 (GBP 390mn)

USD/CHF

  • 0.8325 (CHF 448mn)
  • 0.8225 (CHF 480mn)
  • 0.8140 (CHF 450mn)

USD/CAD

  • 1.4500 (US$ 1.44bn)
  • 1.3980 (US$ 786mn)
  • 1.3900 (US$ 799mn)
  • 1.3780 (US$ 619mn)

AUD/USD

  • 0.6600 (AUD 477mn)
  • 0.6500 (AUD 598mn)
  • 0.6400 (AUD 444mn)
  • 0.6065 (AUD 819mn)

NZD/USD

  • 0.6100 (NZD 221mn)

For more information on how to use this data, you may refer to this post here.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

USD/CHF Mid-Day Outlook

USD/CHF Mid-Day Outlook

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Daily Pivots: (S1) 0.8182; (P) 0.8265; (R1) 0.8312; More…. Range trading continues in USD/CHF and intraday bias stays neutral. On the downside, break of 0.8187 will resume the fall from 0.8475 to retest 0.8038 low. On the upside, above 0.8346 will bring stronger rise to 0.8475. Firm break there will extend the corrective pattern from […]

The post USD/CHF Mid-Day Outlook appeared first on Action Forex.

BoE’s Taylor: Higher inflation not coming from demand and supply pressures

Byadmin

BoE’s Taylor in the Financial Times, info via Reuters headlines:

  • I’m seeing more risk piling up on the downside scenario because of global developments
  • A trade war is going to be negative for growth
  • Thought we needed to be on a lower monetary policy path
  • Higher inflation not coming from demand and supply pressures, for the most part its coming out of one-time tax and administered price changes

That last point, Taylor is playing down inflation pressures, one off factors only. If he is correct it leaves scope for further BoE cuts as inflation pulls back.

This article was written by Eamonn Sheridan at www.forexlive.com.