Month-on-month PCE for United States measures sequential price change in consumer expenditures, providing an early read on inflation momentum before base effects are applied to derive the year-on-year figure.
Why FX traders watch it
A string of elevated monthly PCE prints signals persistent inflation that keeps the Fed on hold or hiking. Declining sequential readings are the key input driving Fed pivot speculation and rate-cut pricing.
How to interpret the data
Monthly PCE above 0.3% is considered hot; below 0.2% is consistent with a return to the 2% annual target. Surprises relative to consensus drive the largest intraday moves in usd pairs.