Market Watch: Core Personal Consumption Expenditure Data

On Friday, September 29, 2023 at 4:30 pm Dubai time, the market is awaiting the announcement of consumer spending data in the United States. Expectations indicate a reading of 0.2% compared to the previous month. This is the Fed's preferred indicator for measuring inflation, given that it represents basic consumption prices for goods and services targeting individuals and consumers in general.


These expectations indicate that the index will continue to remain stable arounds the same levels for the third consecutive month, which provides an opportunity for the Federal Reserve to maintain its current monetary policy without change. Therefore, investors will follow this reading with interest as stock and metal prices continue to decline, looking for a potential rebound in prices.


Expectations could indicate a decline in the Dollar Index according to analysts, if the real reading comes in at the expected rate or lower. This could also have a positive impact on both stocks and metals.


However, if the reading is higher than expected, this will increase chances that the Fed will raise interest rates at its next meeting in November 2023. This could be positive for the dollar and negative for stocks and metals, according to analysts.


The data release could be accompanied by fluctuations in the financial markets, remembering that the initial market reaction, regardless of the nature of the actual reading, may be sharp and volatile at first before the market returns to stability.


Therefore, it should be noted that traders each have different ideas and beliefs in the way they interpret the information issued, and therefore prices cannot move 100% according to that information.



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