The Federal Reserve’s preferred inflation reading for the month of August will be released on Friday along with other data (the ForexLive economic data calendar is free, access it here.) Higher than expected will fuel expectations that perhaps the Fed's rate hike cycle is not yet over and should act as a headwind for risk assets. Vice versa if the data is under.
For Core PCE Price indexes the consensus, as you can see in the screenshot above, is for 3.9% y/y and 0.2% m/m. The ranges for each are:
- y/y % 3.7 to 4.2
- m/m % 0.0 to 0.3
While results away from the consensus are more likely to prompt a move than an 'in line' result, results below the minimum or above the maximum will have an ever greater impact.