I see many friends don't quite understand tonight's PCE data, so let me explain the impact of the data and how to view it in the current market in simple and easy-to-understand language:

Tonight at 9:30 PM, the U.S. will release the December PCE data, and the core PCE is key for the Federal Reserve's assessment of inflation. The 2% target they've always mentioned refers to the core PCE year-on-year reaching 2%. So this data is quite crucial, as it can reflect the direction of inflation in the U.S. If the core PCE value is low, the market generally sees it as a good thing, possibly indicating that the Federal Reserve might cut interest rates more often.

However, when the Federal Reserve makes decisions, they need to consider inflation, the labor market, and the economic situation as a whole. Looking at just one month of inflation data makes it hard for them to change their minds. Moreover, even if they want to cut rates more, it’s likely to happen after March. So, this inflation data isn't really that significant.