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Forex Today: Markets expect a US monthly CPI of 0.2%

Forex Today: Markets expect a US monthly CPI of 0.2%

 US CPI data will be released today and is expected to show that annualized US inflation increased slightly to 3.3%.

➡️ US CPI (inflation) data is due later today. It has become the key data event in the Forex market in recent years, as it is the main driver of the Fed's monetary policy. The annualized rate has been declining for many months, but is now expected to rise from last month's 3.0% to 3.3%However, the monthly increase is expected to remain the same, at 0.2%. Any major deviation from this could impact the US dollar and other associated markets. There will also be a release of US unemployment claims data.

➡️ Global stock markets were mostly trading lower yesterday due to a technology-led sell-off. The NASDAQ 100 Index  it fell solidly and closed below recent key support levels, which is a bearish sign. However, the last few hours have seen most stock markets recover to some extent.

➡️ WTI Crude Oil and Gasoline Futures  they seem bullish after the strong break to new highs of the last 8 months. Trend traders might find it interesting to get involved here on the Long side.  

➡️ The US dollar does not have a convincing long-term trend and is currently quietly consolidating between the support at 101.56 and resistance near 102.375.

➡️ In the Forex market, the Japanese yen has been the weakest major currency since the Tokyo open, with the Australian dollar once again the strongest, bringing into focus the AUD/JPY currency cross . The major USD/JPY currency pair is advancing towards new 1-month highs and is not far from the long-term high above ¥145.

 

Credit by DailyForex.com

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