EUR/USD, GBP/USD flows - PCE prices revised down as suspected; Germany confirmed higher
Mixed data, PCE price downward revisions, Germany upside, tending to stem the dollar
Cable seeing the greatest benefit, with short positioning and GDP data helping firm Nov hike expectations
Large batch of US data and the US core PCE price index comes in lower than expected both in the month and thanks to historical revisions. 0.2%m/m vs mkt 0.3% (though last month +0.1pp revision) and 3%y/y vs mkt 3.3% with prior month revised to 3% from 3.3% too. The 0.3pp reduction is broadly in line with the guesstimates of the likely technical downward revision with the annual changes.
Activity side looks firmer with final GDP 2.2% vs mkt 1.5, personal consumption firmer though income weaker in Aug. Full revisions need a deeper look there to get the full picture. Follows ADP data that also comes in modestly on the high side of mkt at 90k vs 70k.
With the US inflation print on the low side, and following confirmed German prints on the upside, tending to stymie the strong dollar run today, especially following Williams comments yesterday. Cable particularly benefits on the covering bounce.