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Forex Today: Markets Expecting Unchanged US Inflation Data

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

New US inflation data which will be released today is expected to show that the annualized pace of inflation has not slowed.

  1. There will be a release of US CPI data today, which is undoubtedly the key driver of the US Dollar and therefore the broader Forex market these days. Markets are expecting an unchanged annualized rate of 3.1%, but with Core CPI expected to show month-on-month growth of only 0.4%, compared to the 0.3% increase shown over the previous month. A surprise weaker inflation reading will likely send the Dollar sharply lower and US stock markets higher, while a surprise in the other direction will probably have an opposite effect.
  2. Bitcoin advanced again yesterday to make a new all-time high just below $73,000. The price has retreated but the short-term price action looks bullish. Trend traders will be interested here on the long side.
  3. The price of Gold is showing initial signs of having topped out on Friday at a record high of $2195. However, these are only initial signs, and bulls are not likely to start getting out of longer-term positions yet until a deeper bearish pullback might be made.
  4. In the Forex market, the Swiss Franc has been the strongest major currency since the Tokyo open today. The Japanese Yen has been the weakest.
  5. The US Treasury is holding a 10-Year Bond Auction later today.
  6. UK Claimant Count Change (unemployment claims) data came in roughly as expected.

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Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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