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This week’s highlight is the US core PCE deflator – Societe Generale

The fact that the Federal Reserve (Fed) targets the US core PCE deflator makes it more important than the core CPI, notes FX strategist Kit Juckes at Societe Generale.

US PCE dominates the market

“The highlight of the week appears to be the US core PCE deflator. The fact that the Federal Reserve (Fed) targets it makes it more important than the core CPI, but the latter is more informative – I doubt the market learn a lot.”

“The Canadian rates market is uncertain whether the Bank of Canada will cut rates in July or September and will react to any surprise from tomorrow’s CPI data (expected to show a 0.1% drop in headline and underlying cut readings). to 2.6% and 2.8% respectively).”

“Australia’s May CPI matters less to the RBA than the quarterly figure at the end of July, but an expected acceleration back to 3.8% would not hurt the AUD. A rebound in Tokyo inflation (Friday) to 2.3%, with core CPI probably stable at 1.7%, won’t have much impact.”

Source: Fx Street

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