Critical data has been announced in the USA. The eyes of those who follow Bitcoin, gold and the dollar were on the Core Personal Consumption Expenditures of May, which will come from the USA. Let’s look at the details.
Incoming numbers
The United States PCE Price Index for May produced mixed results. The realized annual rate was 3.8%, indicating a slight decrease from the previous figure of 4.3%. However, it fell short of market expectations of a 4.6% increase.
In May, the United States Core PCE Price Index showed stable numbers. The realized annual rate remained unchanged at 4.6%. Accordingly, it was in agreement with the previous reading. Market expectations for this index were slightly higher, predicting an increase of 4.7%. The PCE Price Index provides valuable information on inflation trends in the United States. Core inflation remained relatively stable, while the overall index fell modestly. These figures point to a complex inflationary environment. It can also affect the future actions of policy makers and market participants.
Uncertainty prevails in the gold market
Recent economic data has caused the gold market to seek direction. It also caused prices to remain close to unchanged levels. Gold futures for August futures were down 0.10% on the day, trading at $1,916 an ounce. It’s important to note that while core prices remain stubbornly high inflation, headline inflation is declining at a faster rate. The report pointed to a 0.1% increase in the headline PCE compared to a 0.4% increase in April.
Consumption data in the report point to an interesting situation. He points out that consumers create a safety net as personal income exceeds spending. Personal income exceeded expectations with an increase of 0.4%. On the other hand, personal expenditures lagged behind estimates with a modest 0.1% increase. These trends could lead the Federal Reserve to complete its tightening cycle after a recent rate hike in July.
Dollar and Bitcoin
cryptocoin.com When we look at it as a whole, it is seen that there is a slight upward trend in the Dollar after the announcement of the data. Accordingly, the dollar is at the level of 26.07 TL. On the other hand, when we look at Bitcoin, we see that there is a modest increase in Bitcoin. Accordingly, Bitcoin, which reaches up to $ 31,200, is trading at $ 30,994 at the time of writing.
Andrew Hunter, deputy chief economist at Capital Economics, highlights the weak economic activity stemming from low consumption. He believes the rate hike in July will prompt the Federal Reserve to pause the tightening cycle. Despite this, Hunter points to a significant slowdown in real consumption growth. It also forecasts that total GDP growth will slow to 0.5% year-on-year in the second quarter. Although the Fed continued to raise interest rates at the FOMC meeting at the end of July, declining consumption growth and the deceleration of core inflation indicate that this may be the last increase in the near future.
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