US Prepares to Release Inflation Data: Here Are the Current Expectations!

The U.S. Bureau of Economic Analysis will release personal consumption expenditures (PCE) inflation data for November today. Annual PCE inflation is expected to decline to 2.8% from 3% last month, while the monthly rate is expected to remain unchanged. On the other hand, Core PCE, the Fed's preferred gauge for measuring inflation, is expected to rise 0.2% month-on-month, while the annual rate is projected to fall to 3.3%, its lowest level since 2021.

Forecasts from Wall Street experts are mostly in line with market expectations, with Fed Chair Jerome Powell predicting three rate cuts in 2024. The market currently has a 45% chance that the Fed will start cutting rates in March. Furthermore, CME FedWatch puts the probability of a 25 basis point rate cut in March at 71%.

The U.S. Dollar Index (DXY) is pegged at 101.8 on Friday, while the monetary policy outlook is dovish but set to fall for the second week in a row in anticipation of a rate cut by the Federal Reserve.

Moreover, the yield on U.S. 10-year Treasury bonds continues to decline after falling below 4% last week. It is currently at 3.89% and has risen slightly as traders await inflation data.

Fed rate cuts and other macro factors help the Bitcoin price and crypto market recover. Traders and investors are also considering spot Bitcoin ETF approval and Bitcoin halving factors in anticipation of a major bullish rally.

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