US Core PCE YoY for June 2.6% versus 2.5% estimate

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US Core PCE YoY for June 2.6% versus 2.5% estimate

• Prior month core PCE 2.6%
• Core PCE MoM 0.2% versus 0.1% estimate. Unrounded was lower than the 0.2% gain at 0.188%
• Core PCE urine year 2.6% versus 2.5% estimate. Last month 2.6%
• PCE MoM 0.1% vs 0.1% estimate. The unrounded was lower than 0.1% at  0.0788%
• PCE YoY 2.5% versus 2.5% estimate and 2.6% prior
• Personal income +0.2% versus 0.4% estimate. Prior month revised down to 0.4% from 0.5%. Wages and salaries were up 0.3%.
• Personal spending 0.2% versus 0.4% last month (revised from 0.3%).
• Savings rate came in at 3.4% versus 3.5% last month

For the full report from the BEA click here

Other views:

• Annualized 3-month inflation rate 2.3% versus 2.9% prior.
• Annualized 6-month rate for core PCE 3.4% versus 3.3% prior.

The core PCE was a bit higher than expectations which is congruent with the core PCE data released yesterday through the GDP report.

Looking at the markets, yields remain lower:

• 2 year yield 4.412%, -3.1 basis points
• 5-year yield 4.106%, -2.7 basis points
• 10-year yield 4.221%, -2.5 basis points
• 30-year yield 4.465%, master .5 basis points

Looking at the stock futures:

• Dow Industrial Average average +254 points
• S&P of 43.03 points
• NASDAQ index up 200.92 points

The Fed pricing sees 67 basis points of cut by the end of the year with a cut in September priced in. That is little changed from pre-release levels.

                This article was written by Greg Michalowski at www.forexlive.com.

Source: US Core PCE YoY for June 2.6% versus 2.5% estimate

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