• Core PCE inflation was a little higher than expected in January at 5.2% YoY. 
• This didn't seem to provoke a market reaction with focus more on geopolitics. 

Inflation in the US, as measured by the Core Personal Consumption Expenditures (PCE) Price Index, rose to 5.2% YoY in January, the US Bureau of Economic Analysis reported on Friday. That was above the median economist forecast for 5.1% and marked an acceleration on December's 4.9% reading. MoM, the Core PCE inflation rate was 0.6%, above the median forecast for a rate of 0.5%, and slightly above December's MoM inflation rate also of 0.5%. 

Core PCE is the Fed's favoured gauge of underlying inflationary pressures in the US economy. The headlines PCE rate of inflation was 6.1% YoY and 0.6% MoM. 

Market Reaction

It does not seem as though FX or other markets have reacted to the latest tranche of US data, with focus much more on geopolitical developments for now.