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CFD News: US30 Thoughts Post CPI, Pre FOMC

December 14, 2022
by Joseph Jeffriess, Market Analyst

Hi, and thanks for taking the time to look at our latest update. We hope everyone has been hitting some trade wins.

Today we are looking at the US30 after its wild session after yesterday’s US CPI data. The data came in below expectations, and this continues the run of lower-than-expected releases. This remains a touch confusing, as last week, we saw the PPI increase. Inflation sits at 7.1% y/y. Is this enough for the fed to set a slightly more dovish stance this week?

Message from the fed has softened, but we still expect to see rates come in 50 points higher this week. This is a decrease in previous meetings, so it’s a softening in that area if it does happen. The gambler in me wonders if we could see 25 points before Christmas, but the realist thinks we will most likely see the expected 50 points.

The US30 saw one heck of a fade after the CPI data, and that does make me wonder if the market is feeling edgy regarding the feds’ message this week, which may coincide with a high point in the rally. For now, we see resistance at 34,600 and at 35,270.

Will that feds message this meeting cement buyer confidence, or could it start a new push lower if the message moves away from the softening tone we have started to see develop?

The FOMC, funds rate, statement, and economic projections will be released tomorrow morning AEDT time at 6:00 am, followed by the press conference at 6:30 am.

US30 Analysis Video

All times are AEST.