MARKET ANALYSIS: Dollar sells off as PCE inflation unexpectedly cools across the board

On 20 December, financial website Forexlive commented on the US PCE data: Estimates based on the Consumer Price Index and other data suggest that the PCE price index rose 2.4% year-on-year in the 12 months to November, with the core PCE, which excludes the volatile food and energy categories, rising 2.8% year-on-year. It was a surprisingly cool report across the board, as the dollar is selling off while bonds are rallying.

In addition, traders continue to bet that the Fed will pause its rate cuts in January and are increasing their bets that the Fed will cut rates in March, with another cut expected in October, Golden Ten Data monitored.