Forex Today: Markets Expecting 0.3% MoM Increase In US CPI

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Markets are closely watching the US CPI (inflation) data release due today, which is expected to show prices rising by 0.3% month-on-month.

1. US CPI (inflation) data due today is expected to show a month-on-month increase in prices of 0.3%. A deviation from this result will likely cause volatility in the US Dollar and in the US stock market.
2. Global stock markets are recovering a bit today after another poor showing yesterday, mostly on Trump's downplaying the recent market selloff and promising to back down on the new 50% Canada import tariff. The USA and Canada also concluded a joint announcement that the recent Canadian surcharge of 25% on electricity exports is ending. Ukraine's announcement that it accepts a US plan for a temporary ceasefire has also helped lighten the mood.
3. The Bank of Canada will be holding a policy meeting today and is expected to cut its Overnight Rate from 3.0% to 2.75%.
4. Governor Ueda of the Bank of Japan made comments which were bearish for the Yen, stating that underlying Japanese inflation is still below the Bank's 2% target rate. The USD/JPY currency pair is very close to a valid long-term bearish trend after markets recently saw further capital inflows into the Yen as part of a slight to safety. The USD/JPY only requires a New York close below ¥147.26 to qualify.
5. In the Forex market, the US Dollar has been the strongest major currency since today's Tokyo open, while the Japanese Yen has been the weakest, putting the USD/JPY in focus.
6. Gold is holding up relatively well despite widespread strong selloffs in commodities.
7. Bitcoin fell yesterday to trade at a new 4-month low price, but at the time of writing is struggling to break up above the pivotal new resistance level at $83,277.
8. US JOLTS Job Openings data came in a bit stronger than expected yesterday

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