Will US CPI Continue to Feed the Risk Rally?
Eyes on today’s CPI data.
Risk markets set the tone on Wednesday as traders reacted to hopes that today’s CPI data will come in lower than expected. This could lead to smaller interest rate hikes and could even signal peak inflation.
We’re anticipating tonight’s data and if it will live up to the hype. How much has been factored in? Could it be a disappointment if it fails to meet what’s being expected?
It is simple. We see a solid beat to the downside we think risk markets will continue to rally. We see it come in as expected, or god forbid higher, and we think they will fall.
We have done a quick price action review on the USD index and US30. Major risk currencies look to be consolidating at this stage in the lead-up. The USD index is trying to hold out at 103.00.
US CPI data is due today at 12:30 am AEDT / 8:30 am ET.
Today’s Analysis Video