The way the market will react to this data point is most likely to be as follows. A strong inflation reading that comes in above 7% for the headline and above 6 % for the core will show market participants that the Fed still has more to do in terms of hiking rates
The Fed are widely expected to hike interest rates by 75bps this Wednesday. Short Term Interest Rate markets are seeing it as a 100% probability and the same markets have a 79% chance of a larger 100bps hike. The expectations for larger hikes have increased after last Tuesday’s US CPI print where the headline and … Read more
The US CPI inflation print is hotly anticipated and it could be a catalyst for USD weakness. See here how to trade it.
Will the USD see a buy the rumour sell the fact response next week?
The USD tends to see strength around the start of 2022. Will that pattern of dollar strength repeat again this year?
