The Fed's favorite inflation indicator is coming! Analysts: Bulls have regained control
At 20:30 Beijing time on Friday, the US personal consumption expenditure (PCE) price data for July will be released, which may provide more clues about the extent of the September rate cut, including the pace of the upcoming rate cut cycle.
According to an authoritative media survey, the US PCE price index is expected to rise by 0.2% month-on-month in July, after rising by 0.1% in June. The US PCE price index is expected to increase by 2.6% year-on-year in July, after rising by 2.5% in June.
In terms of more critical core data, the survey shows that the US core PCE price index is expected to increase by 0.2% month-on-month in July, after rising by 0.2% in June; the US core PCE price index is expected to climb by 2.7% year-on-year in July, after rising by 2.6% in the previous value.
As the Fed's favorite inflation indicator, the year-on-year change in the core PCE price index has a greater impact on policymakers.
Ricardo Evangelista, senior analyst at ActivTrades, pointed out that if Friday's PCE data is lower than expected, it may make people believe that the Federal Reserve will be more dovish, thus creating upside potential for BTC.
It is worth noting that the data released on Thursday showed that the seasonally adjusted quarter-on-quarter annualized rate of the core PCE price index in the United States in the second quarter was revised to 2.8%, lower than the estimated 2.9%, and the initial value was 2.9%.
In addition to the core PCE data released on the same day, the focus of the financial market will also turn to next week's US employment data to find more clues to interest rate cuts.
