Markets Await US PCE Inflation and GDP Data as December Rate Hike Odds Hold

Financial markets are focusing on pivotal United States economic releases, led by PCE inflation and preliminary third-quarter GDP. Traders are pricing an 84% probability of a 25-basis-point Federal Reserve rate hike in December, down marginally from 88%. September Core PCE inflation is projected to rise 0.3% month-over-month and 3.1% year-over-year, while headline PCE is expected to increase 0.5% monthly and 3.6% annually. Third-quarter annualized GDP is forecast to expand 3.2%, up from 2.2% previously, alongside weekly initial jobless claims projected at 198,000.