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Forex Today: Markets expect US inflation to fall to 3.1% today

Forex Today: Markets expect US inflation to fall to 3.1% today

Markets are awaiting the release of US CPI (inflation) data later today, which is expected to show a month-over-month increase of 0.3% and an annualized rate of just 3.1%

➡️ The United States will release its CPI (inflation) data today. The data is expected to show monthly inflation of 0.3% and a sharply declining annualized rate of 3.1%, following last month's sharp decline. An unexpected rise of a much smaller decline could increase the value of the USD, but if the data is as expected, the USD will most likely continue to fall.

➡️ The Bank of Canada will hold a policy meeting today and is expected to raise its interest rate by 0.25% to 5.00%.

➡️ The Reserve Bank of New Zealand left its policy rate unchanged, as he had been widely affected. The NZD barely reacted to the Bank's policy meeting.

➡️ In the Forex market, the spotlight is on the USD/JPY currency pair as the Japanese Yen continues its multi-day streak of getting stronger, with the Yen the strongest major currency so far today and the US Dollar the weakest. USD/JPY is now trading well below ¥140, which suggests that the former long-term bullish trend is over, as the price has now made what looks like more than a simple bearish retracement. Feelings are growing that the Yen has reached a major turning point as the Bank of Japan begins to move away from its former ultra-loose monetary policy.

➡️ The GBP/USD currency pair is also in focus as it continues to break out to new long-term highs and show bullish momentum. GBP/USD is now trading at a 15-month high near $1.2970.

➡️ Bitcoin remains below what appears to be a very crucial round number at $31k, with the price action now looking more uncertain, suggesting that a bullish breakout may not be likely.

➡️ Stock markets are mixed, but the Hang Seng Index is up more than 1% per day so far.

➡️ UK jobless claims data released yesterday came in very slightly higher than expected.

 

Credit by DailyForex.com

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