Inflation index will move USD

Inflation index will move USD

What will happen?

Core Personal Consumption Expenditures (PCE) Index is similar to Core Consumer Price Index (CPI), and the US Bureau of Economic Analysis publishes it monthly. The only difference between them is that PCE measures solely goods and services targeted towards and consumed by individuals. Prices are weighted according to total expenditure per item, which gives important insights into consumer spending behavior. According to many analysts, the Federal Reserve prefers this indicator to estimate inflation.

How will it affect the dollar?

Because of the 7.5% consumer inflation in the US, the USD is fluctuating, and it is affected by many factors. So, the market is waiting for the beginning of rough changes and hawkish steps by the Federal Reserve. Will the actual release amaze traders this time?

On January 28, 2022, the last release got completely in line with the expectation of 0.5%, the same as the previous releases; however, the USD hit the low and kept fluctuating this day, even though it used to trade at high levels.

US PCE.png

How to trade on the Core PCE release?

Due to the importance of the CPE index, the impact on gold and USD pairs can occur. Gold is considered a hedge against inflation, but high numbers increase the chance for rate hikes so that the metal may fall against the USD.

  • If actual numbers beat expectations – the USD will go up, and gold (XAU/USD) will fall.
  • On the contrary, gold will rise.

Check the economic calendar

Instruments to trade: XAU/USD, EUR/USD, USD/CAD, USD/CHF.


How to trade the JPY?
How to trade the JPY?

Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:

Is Inflation Defeated?
Is Inflation Defeated?

Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.

Who Will Rule the US?
Who Will Rule the US?

The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.

Latest news

Market Crash Incoming?
Market Crash Incoming?

This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.

What Currency Will Overperform?
What Currency Will Overperform?

S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera