US PCE Price Index Overview

Friday's US economic docket highlights the release of the Core Personal Consumption Expenditure (PCE) Price Index, scheduled later during the early North American session at 13:30 GMT. The Fed's preferred inflation gauge is foreseen to rise by 0.2% in December, matching the previous month's reading. The year rate, however, is anticipated to have eased from 4.7% in November to 4.4%.

Analysts at Deutsche Bank, meanwhile, anticipate a rather stronger reading and write: “We don't expect the same declines as recently seen in CPI as some of the stronger components in PPI last week are better correlated to PCE components. We expect a 0.4% monthly gain.”