US CPI data will be released later today, which is expected to show last month's annualized inflation rate falling from 3.7% to 3.3%.
➡️ Markets are awaiting the release of crucial US CPI (inflation) data later today. The data is expected to show a monthly increase of only 0.1%, which will bring the annualized rate firmly below 3.3%, if achieved. The US dollar is strong, so higher-than-expected inflation today would likely produce a sharp rise in the greenback.
➡️ In the Forex market, the US dollar remained stable, but the most significant event was the weak Japanese yen, which brought the USD/JPY currency pair at a new one-year high price, just a few pips below the 33-year high. just below ¥152. The price fell sharply, but has started to rise again to regain most of its value and will attract trend trades on the long side. Since the Tokyo open, the Forex market has made little directional movement, and this will likely continue until the next US CPI data release.
➡️ Crude oil continues to recover after hitting nearly 3-month lows last week.
➡️ Today there will be 3 impactful data releases:
- Change to claimant count in UK
- Wage price index in Australia
- Chinese industrial production
Credit by DailyForex.com