US markets closed out the week on a positive note, following the release of the Fed’s favoured measure of inflation, the PCE Indicator. The inflation reading was softer than expected and is yet another green-light for the Fed to cut rates, in the coming week. The Fed meet for the final time this year and are expected to cut rates by 25 basis points, providing some stimulus for the economy and markets. The US Dollar remains subdued, with the EUR holding above 1.1600, while the GBP rise high above 1.3300.The softer reserve allows commodity currencies to book recent gains, with the AUD consolidating above 0.6600, while the NZD trades above 0.5750. This coming week will be focused on the Fed rate decision and US labour market data, which also provides incentive to the Fed, for further rate cuts.
