The Forex market will be heavily focused on today's release of US CPI (inflation) data, which is expected to show a month-over-month increase of 0.2%, which would produce a small increase in the annualized rate.
➡️ The Forex market is heavily focused on today's release of US inflation data. Any reading above a monthly increase of 0.2% could trigger renewed fears of further rate hikes, which would likely push the dollar higher, while a lower reading could move the dollar lower. The Forex market will likely highlight the USD/JPY currency pair , which yesterday recorded strong advances in line with its long-term bullish trend and is showing volatility. One reason for its advance is recent Japanese wage and price data suggesting a lack of sustained inflationary pressure, meaning hypothesized Japanese rate hikes at the end of 2023 look rather unlikely.
➡️ Crude oil remains strong, yesterday WTI reached a new 10-month high price above $89. OPEC a, which makes it very attractive for trend-following traders on the long side. Both OPEC and the US Energy Information Administration released monthly market reports yesterday that view the production cuts as a market contraction, which will likely act to push prices higher. OPEC expects a fourth-quarter deficit of 3.3 million barrels per day.
➡️ UK GDP data released today is expected to show a monthly contraction of the economy by 0.2%.
➡️ Bitcoin threatens to collapse to new 2-month lows as the cryptocurrency sector remains weak, but recovered in trading yesterday.
➡️ Australian unemployment (jobless claims) data will be released today, which is expected to show Australia's unemployment rate holding steady at 3.7%.
Credit by DailyForex.com