Release Explanation: The rate of inflation experienced by consumers in what they spend. It measures price changes in consumer goods and services, and consists of the actual and imputed expenditures of households. It includes data pertaining to Durables, non-Durables, and Services. It is essentially a measure of goods and services targeted towards individuals and consumed by individuals, therefore it is very important in assessing the sentiment of the consumer, especially in a service based economy.
Trade Desk Thoughts: The impact from this release affects the CPI, Retail Sales, Housing and Consumer Confidence numbers. This is released at the same time as Personal Spending and Personal Income reports, and all three complete a very strong picture of consumer sentiment. Named by the Federal Reserve as their preferred measure of near-term Inflation, the variables are Core PCE numbers that strip out food and energy, and the PCE Deflator. The expected release number was hit, and indicates a stabile read in the rate of consumer inflationary pressures.
Forex Technical Reaction: The dollar continued to dominate the major pairs ahead of the equity futures on Wall Street being in the red.