Bitcoin steadies as soft PCE cools October Fed rate hike bets

The US Core Personal Consumption Expenditures (PCE) Price Index rose 0.2% in August. This was below estimates, with year-on-year core PCE at 3%, down from expected 3.3%. The August PCE inflation figure conflicts between reports at 0.3% and 0.2%. According to The Block, Bitcoin is trading near $83,700. Rising Treasury yields are capping gains.

The US economic data released also showed a 2.2% growth in the second quarter, exceeding forecasts of 1.5%, and ADP jobs data indicated private companies hired over 90,000 people in September, above 70,000 expected. Following the PCE data release, money markets adjusted their expectations for a Fed rate hike in October. According to FXStreet, the odds of a hold stand at 66%, with nearly 34% chances for a rate hike.

The softer PCE data has also impacted currency markets, with the Pound Sterling registering solid gains against the US Dollar, up 0.42% to near 1.3280. Several Fed officials had previously delivered hawkish remarks, but the PCE data release caught investors off guard.

Brief written by urgent.news from The Block, FXStreet, Hindustan Times - World News — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.