US Core PCE In FocusIt’s been a stunning week for the US Dollar with the greenback on curse to close out its biggest weekly gain since June 2021. A hawkish FOMC meeting, teeing up a March rate hike, followed by a bumper quarterly GDP reading has week and truly reignited demand for the Dollar. Traders will now be looking to see if the Dollar can end the week on a high with the release of today’s core PCE data.The data, which is used by the Fed as its primary inflation gauge is set to confirm rising price pressures with the market looking for a 0.5% reading. Any advance on this will no doubt add further fuel to the current USD rally. Conversely, it would likely take a dramatic miss (highly unlikely) to see any USD reversal.Where to Trade US Core PCE?USDCHFThe rally off the .9095 lows has seen the market breaking back into the bull channel with price recently clearing the .9288 highs. With both MACD and RSI bullish and the retail market heavily short, there is plenty of room for further upside here. Look for a break of .9356 to target .9439 initially and the channel top above.
Source: Tickmill
