Markets Expecting Unchanged US Inflation Data
- There will be a release of US CPI data today, which is undoubtedly the key driver of the US Dollar and therefore the broader Forex market these days. Markets are expecting an unchanged annualized rate of 3.1%, but with Core CPI expected to show month-on-month growth of only 0.4%, compared to the 0.3% increase shown over the previous month. A surprise weaker inflation reading will likely send the Dollar sharply lower and US stock markets higher, while a surprise in the other direction will probably have an opposite effect.
- Bitcoin advanced again yesterday to make a new all-time high just below $73,000. The price has retreated but the short-term price action looks bullish. Trend traders will be interested here on the long side.
- The price of Gold is showing initial signs of having topped out on Friday at a record high of $2195. However, these are only initial signs, and bulls are not likely to start getting out of longer-term positions yet until a deeper bearish pullback might be made.
- In the Forex market, the Swiss Franc has been the strongest major currency since the Tokyo open today. The Japanese Yen has been the weakest.
- The US Treasury is holding a 10-Year Bond Auction later today.
- UK Claimant Count Change (unemployment claims) data came in roughly as expected.
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