As financial markets experience a quiet period this week, the anticipation builds towards the release of the Personal Consumption Expenditures (PCE) data by the Federal Reserve Bank, a crucial inflation measure. Set to be announced at 11:30 PM Sydney time on Friday, the core PCE is expected to hold steady at 2.8%. This data is of significant interest because US interest rates have a profound impact on global financial markets, influencing asset classes worldwide.
The timing of the PCE data release coincides with a global holiday, potentially leading to heightened market volatility due to reduced trading activity. Additionally, the USD/JPY currency pair has been a focal point, consistently testing the 152.00 level. Japanese officials have expressed concern over the yen’s weakness, hinting at possible market interventions, which could further contribute to currency volatility.
Given these factors, the period surrounding the Easter break could see amplified market fluctuations driven by the release of pivotal economic data and currency market movements. As we approach the long weekend, with closures from March 29th to April 1st, it’s a key moment for market participants to stay informed and closely monitor these developments. Enjoy the Easter break and stay attuned to market dynamics during this period.