The U.S. Bureau of Economic Analysis will release on Friday core personal consumption expenditures data, the Fed’s favorite inflation gauge. The strength or weakness of the report relative to Wall Street’s consensus estimates is likely to shape the U.S. dollar’s near-term trajectory and possibly influence the FOMC’s guidance at its January meeting next week.
In terms of estimates, core PCE is forecast to have risen 0.2% in December, bringing the annual rate down to 3.0% from 3.2% in November – a step in the right direction for policymakers, who have embarked