Can US CPI Liven Things Up?
We really hope US CPI can liven things up a bit as the last few weeks have seen some typical summertime trading conditions with thinner liquidity and lower volumes. To make matters worse we also have markets in a bit of a limbo until they have more clarity on whether the Fed will taper slowly or taper fast.
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We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://financialsource.co
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This week the market’s attention will turn to the incoming US CPI print to see whether we have any stronger than expected acceleration or deceleration in price pressure in the United States.
The odds of an official tapering announcement at the September FOMC meeting have fallen considerably after the most recent jobs report. As all the focus is on jobs, this week’s CPI probably won’t be enough to sway the markets from that expectation whether we see a beat or a miss.
When it comes to inflation, what the hawks have to say doesn’t really matter right now, we already know what they think about recent price pressures. Thus, watching what the neutral FOMC members have to say is far more important right now because their votes could sway the median.
Thus, if we see a much weaker print, it might be enough to keep them more reserved, but the risk is also there that a much stronger print encourages them to take a second look at inflation risks and could see them tilt more hawkish at the Sep meeting.
As always, more on this and how we look to take advantage of that in our week ahead video.
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If you find these weekly analysis and trade ideas useful, you’ll love Financial Source. There’s a link below where you can learn more about it.
https://financialsource.co
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://financialsource.co
-----
This week the market’s attention will turn to the incoming US CPI print to see whether we have any stronger than expected acceleration or deceleration in price pressure in the United States.
The odds of an official tapering announcement at the September FOMC meeting have fallen considerably after the most recent jobs report. As all the focus is on jobs, this week’s CPI probably won’t be enough to sway the markets from that expectation whether we see a beat or a miss.
When it comes to inflation, what the hawks have to say doesn’t really matter right now, we already know what they think about recent price pressures. Thus, watching what the neutral FOMC members have to say is far more important right now because their votes could sway the median.
Thus, if we see a much weaker print, it might be enough to keep them more reserved, but the risk is also there that a much stronger print encourages them to take a second look at inflation risks and could see them tilt more hawkish at the Sep meeting.
As always, more on this and how we look to take advantage of that in our week ahead video.
-----
If you find these weekly analysis and trade ideas useful, you’ll love Financial Source. There’s a link below where you can learn more about it.
https://financialsource.co
