Jane Foley, Senior FX Strategist at Rabobank, notes that the US personal spending rose by an as expected 0.1% m/m in February after a downwardly revised 0.1% m/m increase in January. Key Quotes “The lacklustre tone of this report was also evident in core PCE. This, the Fed’s preferred measure of inflation, rose by a softer than expected 1.7% y/y in February. The tame nature of PCE inflation cast doubt on the sustainability of recent firmer measures of price pressures. Last week, the Fed’s Bullard suggested that a Fed rate hike “may not be far off”, while Lockhart indicated that an April rate hike is still possible. The USD drifted lower on the back of the PCE release and ahead of the address by Fed Chair Yellen later in the session. The Fed’s Williams also dampened the greenback’s recent comeback by repeating that the US economy is vulnerable to global developments. In spite of the softer tone of the USD, oil declined for a fourth consecutive session. WTI continues to struggle to hold above the $40 /barrel level in the wake of continued concerns about oversupply. The Indonesian government has announced that it will attend a meeting of both OPEC and Non- OPEC producers in Doha next month.” For more information, read our latest forex news.