US Core PCE Price Index m/m comes in at 0.1% against 0.4% consensus

The US Core PCE Price Index m/m for July was released at 0.1%, falling significantly below the consensus expectation of 0.4%. This figure also marked a decrease from the previous month’s reading of 0.3%. The actual print represented a -75.0% surprise compared to analyst forecasts.

Following the release, the US Dollar showed varied reactions against major currencies over the initial 15 minutes. EURUSD moved up 5.2 pips, which is smaller than its median 1-hour move of 11 pips after similar past releases. GBPUSD saw a slight dip of -0.3 pips, well below its typical 13-pip median 1-hour move. USDJPY experienced a more notable move, dropping -17 pips in 15 minutes, exceeding its median 1-hour move of 10 pips. USDCAD moved up 3.6 pips, less than its 13-pip median. Gold, XAUUSD, gained 7.2 pips, a smaller move compared to its median 29-pip 1-hour move. Overall, many pairs showed relatively subdued reactions compared to their historical median 1-hour movements.