These are the Risks Investors Need to Face Ahead of the US PCE Index Data!

<p>&nbsp;After the Gross Domestic Product (GDP) data of the United States (US) was published yesterday, tonight's New York session will focus on the publication of US personal expenditure data (PCE Index).</p><p><br /></p><p>The data that will be published by the Bureau of Economic Analysis (BEA) is also one of the important indicators by the Federal Reserve (Fed) in setting their monetary policy such as reading inflation data (CPI).</p><p><br /></p><p>Fed Chairman Jerome Powell on Wednesday still repeated his signal to raise interest rates several more times towards the end of 2023, after rates were kept on hold at the latest FOMC meeting.</p><p><br /></p><p>This is the driver of the direction of movement for the US dollar which is expected to strengthen for the trading period ahead in addition to being supported by encouraging US economic data.</p><p><br /></p><p>The annual reading on US PCE inflation data in May is projected to rise to 4.6%, slightly firmer than the 4.4% increase in April.</p><p><br /></p><p>The majority expect the potential for continued strengthening of the US dollar after the PCE inflation report is published shortly.</p><p><br /></p><p><br /></p><p>So far, the CME Group FedWatch Tool indicator shows the market tendency is over 80% for the Fed to raise interest rates by 25 basis points to 5.25%-5.50% at the July meeting.</p><p><br /></p><p>However, it should also be noted that investors face the risk of uncertainty at the end of this week especially for the closing of the second quarter of 2023.</p><p><br /></p><p>There is a high probability of profit taking by market players against US dollar trading, before getting the best price to continue the opening of the third quarter.</p><p><br /></p><p>Therefore, it is not impossible that the US dollar could experience a significant decline in the last session of the week even if the long-term movement is expected to strengthen again.</p><p><br /></p><p>Control your trading risk and have a great weekend!</p>