Tuesday’s upcoming US Consumer Price Index (CPI) report is expected to significantly impact the market. In today’s video, I will provide a comprehensive analysis of what to anticipate from the CPI, focusing on the projected 2.9% figure.
We will explore key levels to monitor for the DXY, EURUSD, GBPUSD, and even the Nasdaq, while also discussing my insights on the implications of tomorrow’s CPI release.
Let’s dive in and discover the potential market movements together!
Markets are bracing for a US CPI number on Tuesday that will likely trigger intense volatility.
The 2.9% year-over-year forecast will be the number to watch on Tuesday.
A CPI above 3% will likely be bullish for the US dollar and send risk assets like stocks and also the euro and pound lower.
On the flip side, a reading below the 2.9% forecast will likely be bearish for the dollar.
The US stock market is currently pricing in a best-case scenario, with the consensus being that inflation will continue to drop this year.
I believe that inflation remains stickier for longer, which could throw a wrench into the Fed’s plans to cut rates at the pace the market expects.
Of course, time will tell.
As for trading Tuesday’s CPI numbers, the safest approach is to wait for the volatility to settle before even considering a trade.
Trading before or during Tuesday’s inflation numbers is risky, to say the least.
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