PCE Inflation data, which will be announced on Wednesday, is the focus of investors and market participants. This data, which the US Federal Bank uses to make monetary policy decisions, may indicate the alleviation of inflation pressure in March, according to market expectations. This indicator, which measures the price increases in products, is expected to reflect the developments that may be effective in their orientation to risky assets.
PCE Inflation Data
According to market data, March core PCE inflation rate is expected to be at a level of 2.6 %. The decline of this figure, which was recorded as 2.8 %in February, will be considered as an indicator of a trend pointing to slowing down. General PCE inflation is also expected to decrease compared to last month; The figures, which are expected to reach 2.2 %on an annual basis, have a decline in the previous 2.5 %.
Possible effects on the crypto market
Low inflation figures are thought to increase the likelihood of the Central Bank’s monetary policy. This may result in increasing the interest interest in risky assets of possible reductions in interest rates. In particular, the reduction of the attractiveness of return -oriented investment instruments can support the turning to alternative investment areas.
According to experts’ statements, the expected inflation decrease may cause more liquidity to the financial system. This may trigger orientation to assets that offer high return potential. Low inflation rates are thought to create a positive acceleration in the market.
Will Meade: Lower than expected PCE, stock market and risk assets can provide a sudden increase.
March inflation data are considered as an important indicator in the Central Bank’s strategy to fight inflation. Since the PCE index is more extensively monitored in measuring price increases, the confidence in economic analysis through consumer expenditures can increase.
Investors will increase their expectations for interest rate cuts if inflation figures remain below estimates. These developments may lead to an increase in demand for assets with high risk levels. However, if inflation follows above the predicted values, a cautious approach can be observed in the markets. Therefore, we can say that the expectation and the data below will increase the rise in the following hours and vice versa will bring a decrease.
The described data can be used as an important reference when evaluating the monetary policy decisions of market actors. While the uncertainty continues in the economy, careful analysis and monitoring of data can help create future investment strategies.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
