PCE Core Rise Fuels Rate Hike Bets; Brent Crude Slumps to $72
Rising core PCE inflation is expected to reinforce rate hike expectations. Meanwhile, Brent crude fell sharply yesterday, trading near $72/bbl this morning, close to pre-war levels, pressured by a stronger dollar and growth concerns.
A rise in the core PCE price index is likely to strengthen bets on further interest rate hikes, according to market commentary.
In commodities, Brent crude plunged yesterday and is trading around $72 per barrel this morning, approaching levels seen before the Ukraine conflict. While supply-side factors still dominate oil market attention, analysts point to the stronger US dollar and associated growth worries as the primary drivers behind the recent decline.
The drop brings crude closer to the $70/bbl mark, a level not sustained since early 2022.
Source: FXStreet Forex News