One key measure of US economic health just missed analyst expectations.
Core personal consumption expenditure increased by 1.1 per cent in the year to November. Analysts had expected a rise of 1.2 per cent.
John J. Hardy, head of FX Strategy at Saxo Bank, says "the inflation/disinflation debate has been the hottest theme going in recent months."
Last month's reading of 1.1 per cent was the lowest since early 2011.
If we see the core data below one per cent for a while, then Hardy says that "the market may begin to fret a tapering of the taper (for example, the Fed having second thoughts eventually about further reductions)."
He says that "it would take either several more months of low readings near present levels or slightly lower — or a sharp and drastic reading over a shorter time frame — for this to raise concerns."