US PCE core inflation down to 1.8% y/y
Personal spending disappoints at just +0.1% m/m
- EURUSD recovers but still close to lows
US PCE core inflation declined in January to 1.8% y/y from (upwardly revised) 2% in December, underscoring a low inflationary pressure in the US economy. On top of it, both personal incomes (0.2%) and spending (+0.1%, December figure revised down to -0.6%) were below the consensus, underscoring a weak consumer momentum. However, this release is a delayed one due to shutdown so investors could hope the situation could have improved already and thus the impact of the data is limited. EURUSD is up but just a bit and on a daily chart the pair remains close to recent lows.