US Core PCE prices rise but not by as much as feared- EUR/USD lifts

The eagerly awaited contents of the March US PCE report have just hit the screens. As noted here earlier, the markets were expecting a slightly lower annualised core rate last month of 2.7%, compared to the 2.8% rise in February. At the same time no one was likely to be surprised, if the reading was a little higher, given the Q1 GDP and PCE reports released yesterday. Well, Core annualised prices have actually risen by 2.8%. The impact of that news has not had that much of an impact on the dollar. The US currency was a little higher heading into this report. The EUR/USD had backed off to around 1.0715 ahead of the release. It has now bounced back above 1.0730