Personal consumption expenditures prices in the United States for the fourth quarter increased by 2.4%, surpassing the anticipated 2.3%. This data provides insight into consumer behaviour and economic trends.

The report also notes movements in various currencies, including EUR/USD, which faced selling pressure due to a stronger US Dollar. GBP/USD traded around 1.2630 amid increasing demand for the Greenback.

Gold prices experienced downward pressure, hitting new lows at sub-$2,880 per ounce, while Bitcoin rebounded to approximately $86,000 after significant fluctuations.

In Europe, inflation is expected to decline sharply in France, although prices for services continue to rise across the Eurozone.

The latest data from the US shows that personal consumption expenditures prices rose by 2.4% in the fourth quarter, slightly above forecasts of 2.3%. This tells us that inflationary pressures are still present, even if they appear to be easing compared to earlier periods. For traders, this means a reassessment of rate expectations and, potentially, shifts in risk sentiment across markets.

Currency markets reflected these dynamics, with the US Dollar strengthening against both the Euro and the Pound. Selling pressure on EUR/USD suggests that markets favoured the Greenback, likely in response to expectations that US monetary policy may remain tight for longer. Similarly, GBP/USD holding near 1.2630 indicates that Sterling was unable to gain traction, despite ongoing speculation about the Bank of England’s future moves.

Gold, meanwhile, dropped to new lows below $2,880 per ounce. The decline reinforces the idea that investors have been adjusting their allocations amid shifting interest rate expectations. The downward move in gold, traditionally a hedge against inflation and economic uncertainty, suggests that traders are weighing up whether central banks will maintain restrictive monetary policies or move towards easing later in the year.

Bitcoin, on the other hand, rebounded to roughly $86,000 after volatile swings. This resilience suggests that market participants are still willing to engage with higher-risk assets. The rebound may also reflect broader optimism in digital assets, particularly if liquidity expectations remain supportive.

European inflation numbers are also shaping broader market sentiment. While inflation in France is set to fall sharply, service prices throughout the Eurozone remain on the rise. This contrast suggests that inflationary pressures are not uniform across sectors, making it necessary for policymakers to remain measured in their approach. Market participants need to account for these varying conditions, as they could affect interest rate decisions by the European Central Bank and, by extension, the attractiveness of the Euro in the weeks ahead.