US October core PCE +2.8% y/y vs +2.8% expected

• Prior was +2.7%
• Core m/m +0.3% vs +0.3% exp
• Unrounded core PCE was +0.2727% m/m
• Core PCE +2.8% y/y vs +2.8% expected
• Headline inflation PCE +2.3% y/y vs +2.3% expected (Prior +2.1%)
• Deflator +0.2% m/m vs +0.2% expected
• Unrounded +0.238% m/m

Consumer spending and income for October:

• Personal income +0.6% vs +0.4% expected. Prior month +0.2%
• Personal spending +0.4% vs +0.3% expected. Prior month +0.6%
• Real personal spending +0.1% vs +0.5% prior
• Savings rate 4.4%

This report is very much in line with expectations, I don’t see much scope for market moves on the headlines. Fed pricing for a Dec cut remains at 65%.

This article was written by Adam Button at www.forexlive.com.