Core PCE US February +5.4% y/y vs +5.5% expected


USD

  • February PCE Report Highlights

Adam’s button

Thursday 03/31/2022 | 12:30 GMT-0

03/31/2022 | 12:30 GMT-0

Underlying PCE inflation

  • Before was +5.2% y/y
  • PCE core MoM +0.4% vs +0.4% expected
  • Previous month +0.5%
  • Deflator YoY +6.4% vs +6.7% expected
  • Year-over-year prior deflator +6.1%
  • MoM deflator +0.6% vs. +0.6% before

Consumer spending and income for February:

  • Personal income +0.5% vs +0.5% expected. Previous month +0.0%
  • Personal expenses +0.2% vs +0.5% expected. Previous month -0.2%
  • Real personal expenditure -0.4% vs. +2.2% previously

Store futures contracts

Futures contracts

A futures or futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specific time in the future. It should be noted that the parties do not know each other. These transactions generally involve commodities or other securities involving the buying and selling at a forward or predetermined price. Futures contracts also adhere to a delivery date, which specifies the date of delivery and payment. Compared to other forms of investing, futures contracts are much more complex, as they involve specified and non-flexible parameters. Futures contracts are traded on exchanges which act as a unified market for buyers and sellers. The buyers of contracts represent the holders of long positions, while the sellers represent the holders of short positions. Both parties risk their counterparty walking away if the price goes against them. As such, the contract may involve both parties incurring a margin of the value of the contract with a mutually trusted third party. This margin can vary significantly, depending on the current market volatility of the security being traded. Futures contracts can be incredibly risky. and are the classic definition of stock market speculation. A trader who predicts that the price of an asset will move in a certain direction can contract to buy or sell it in the future at a price. If this prediction is correct, the trader will profit from it. If the prediction is incorrect, there will be losses. Futures trading is considered an advanced type of trading that requires prior knowledge and understanding. For this reason, retail traders will rarely have access to futures trading through brokers without first going through specific questions or account requirements.

A futures or futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specific time in the future. It should be noted that the parties do not know each other. These transactions generally involve commodities or other securities involving the buying and selling at a forward or predetermined price. Futures contracts also adhere to a delivery date, which specifies the date of delivery and payment. Compared to other forms of investing, futures contracts are much more complex, as they involve specified and non-flexible parameters. Futures contracts are traded on exchanges which act as a unified market for buyers and sellers. The buyers of contracts represent the holders of long positions, while the sellers represent the holders of short positions. Both parties risk their counterparty walking away if the price goes against them. As such, the contract may involve both parties incurring a margin of the value of the contract with a mutually trusted third party. This margin can vary significantly, depending on the current market volatility of the security being traded. Futures contracts can be incredibly risky. and are the classic definition of stock market speculation. A trader who predicts that the price of an asset will move in a certain direction can contract to buy or sell it in the future at a price. If this prediction is correct, the trader will profit from it. If the prediction is incorrect, there will be losses. Futures trading is considered an advanced type of trading that requires prior knowledge and understanding. For this reason, retail traders will rarely have access to futures trading through brokers without first going through specific questions or account requirements.
Read this term ticked above after the inflation

Inflation

Inflation is defined as a quantitative measure of the rate at which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general price level where a given currency is effectively buying less than it has in previous periods. In terms of valuation of strength or currencies, and by extension foreign currencies, inflation or its measures are extremely influential. Inflation stems from the global creation of money. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply relative to the wealth produced (measured with GDP). This thus generates demand pressure on a supply that is not increasing at the same rate. The consumer price index then increases, generating inflation. How Does Inflation Affect Forex? The level of inflation has a direct impact on the exchange rate between two currencies on several levels. This includes purchasing power parity, which attempts to compare the different purchasing power of each country based on the general level of prices. By doing so, it helps to determine the country with the most expensive cost of living. The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates in the forex market. Interest rates are also impacted. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on the exchange. Conversely, too low inflation (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the foreign exchange market.

Inflation is defined as a quantitative measure of the rate at which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general price level where a given currency is effectively buying less than it has in previous periods. In terms of valuation of strength or currencies, and by extension foreign currencies, inflation or its measures are extremely influential. Inflation stems from the global creation of money. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply relative to the wealth produced (measured with GDP). This thus generates demand pressure on a supply that is not increasing at the same rate. The consumer price index then increases, generating inflation. How Does Inflation Affect Forex? The level of inflation has a direct impact on the exchange rate between two currencies on several levels. This includes purchasing power parity, which attempts to compare the different purchasing power of each country based on the general level of prices. By doing so, it helps to determine the country with the most expensive cost of living. The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates in the forex market. Interest rates are also impacted. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on the exchange. Conversely, too low inflation (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the foreign exchange market.
Read this term data because it is cooler than expected. I suspect there were some additional concerns after yesterday’s German inflation data blew consensus. The dollar has changed little. Of course, this all happens before the war in Ukraine, so it’s sort of old news.

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