U.S. core PCE inflation likely to have risen 0.2 pct sequentially in October

U.S. personal income and spending data for the month of October is set to release tomorrow. According to a TD Economics research report, the core PCE inflation is likely to have risen 0.2 percent sequentially, pushing the year-on-year rate higher to 1.9 percent.

However, the past disappointment and downward revisions would still leave the fourth quarter core inflation tracking below FOMC estimates at 1.9 percent, with risk for 1.8 percent.

“On a more upbeat note, we expect a strong showing for personal spending (0.4 percent), reinforcing another robust quarter for consumer spending above 3 percent”, added TD Economics.

At 17:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -56.3371. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex