As markets await today’s release of key US inflation data, the market is already behaving as if the data will be dovish, with stocks, soft commodities, the US dollar and Treasury yields all falling.
➡️ Today will probably be a very important day for the markets, especially for the Forex market, as the CPI data will be released (inflation) of the United States which in recent years has become the main driver of the Forex market. The data is expected to show a decline in the annualized inflation rate from 2.9% to 2.6%. If the decline is more pronounced, we can expect to see the US dollar and its Treasury yields fall further., while stock markets will likely get a boost. If the surprise is in the opposite direction, the effect on prices will likely be in the opposite direction.
➡️ The Japanese yen continued to strengthen, helped by comments from a Bank of Japan official that the Bank will raise rates if inflation remains on track. (i.e. it continues to rise). The USD/JPY currency pair looks bearish and previously traded at a new 9-month low below ¥141.
➡️ In the Forex market, the Japanese yen was the strongest currency since the opening of the Tokyo Stock Exchange today, while the US dollar was the weakest, with the downtrend in the USD/JPY currency pair continuing to show momentum.
➡️ Most commodities, especially soft ones, look weak. WTI Crude Oil It looks bearish after trading at a new 14-month low yesterday. However, They remains bullish as it trades above $ 2.520, just a few dollars away from its all-time high it reached just a few weeks ago.
➡️ Stock markets are showing declines almost everywhere, while the risk-off sentiment theme continues. The sharpest declines are in Asia.
➡️ 2-year and 10-year US Treasury yields continue to fall to new long-term lows, prompting trend traders to enter short positions. If your CFD broker doesn't offer trading on these returns, the relevant CME micro futures are another option to participate.
➡️ The first US presidential debate between former President Donald Trump and Vice President Kamala Harris took place just hours ago, with reaction polls seemingly showing that Harris was perceived as having performed better overall. Since then, betting markets have shifted slightly in Harris’s favor, showing mostly identical odds for both major candidates. The race is extremely tight in the key swing states, and the outcome is clearly too close to call at this time.
➡️ UK GDP data will be released later today, which is expected to show the UK economy growing by 0.21T3Q last month.
Credit by DailyForex.com
EN 
IT 
