FXStreet (Delhi) – Brian Daingerfield, FX Trading Strategist at RBS, expects the market to put an even greater focus on the Fed’s preferred inflation measure, the headline and core PCE deflator, released in the PCE report on December 23rd, which includes updates on personal income and spending growth. Key Quotes “Our economists see the core PCE deflator as holding unchanged in November at 1.3% y/y, matching the Fed’s central tendency forecast announced for 2015 on Wednesday. The Fed’s own forecast for the core PCE deflator is for it to rise to just 1.7% by end-2016.” “The U of Michigan confidence index is revised for December, and we will be monitoring the 5-10 year-ahead inflation measure after the Fed noted in its December statement that survey measures of longer-term inflation have edged lower. A revision to third-quarter GDP growth is due next week as are the latest reading on November durable and capital goods orders. Several housing indicators are due as well before year-end, including housing starts and existing home sales.” For more information, read our latest forex news.