EUR/USD trades under modest pressure on Wednesday after the US Personal Consumption Expenditures (PCE) Price Index delivered a mixed inflation picture.
Headline inflation came in above expectations, supporting the US Dollar (USD), although an in-line core reading limited the market reaction
At the time of writing, the pair trades around 1.1660, down 0.12% on the day. The headline PCE Price Index rose 0.2% MoM in July, above the 0.1% forecast and reversing the 0.1% decline recorded in June. On an annual basis, headline inflation held steady at 3.7%, above the 3.6% forecast.
Meanwhile, the core PCE Price Index, the Federal Reserve’s (Fed) preferred measure of underlying inflation, increased 0.2% MoM, matching market expectations but accelerating from June’s 0.1% rise. Annual core inflation held steady at 3.3%, also in line with forecasts. The report also follows relatively moderate July Consumer Price Index (CPI) and Producer Price Index (PPI) figures.