U.S. PCE Deflator Falls Short of Expectations, Triggering Broad Dollar Selling

U.S. PCE Deflator Falls Short of Expectations, Triggering Broad Dollar Selling

U.S. PCE Deflator Results

The November U.S. PCE Deflator was released as follows:

• YoY: +2.4% (previous: +2.3%)
• Market Forecast: +2.5%

The Core PCE Deflator also came in below market expectations, signaling a slowdown in inflation. Following the release, U.S. 10-year Treasury yields declined, leading to a wave of dollar selling across markets.

Forex Market Movements

• USD/JPY: Fell to around 156.35, hitting a new intraday low.
• EUR/USD: Rose to around 1.0419, marking a new intraday high.
• Other Currency Pairs: Dollar selling spread broadly across the board.