Forex has been choppy as global investors respond to the better than expected Consumer Price Index data from the U.S shortly, the results will impact the broad markets.
Global Investors Anticipating U.S Data, Fed Interest Rate Outlook in Focus
The Consumer Price Index data, released shortly from the States is a heavy topic of conversation and will have a serious effect on global markets. US CPI rose by 2.1%, beating analysts expectation of 1.9%. The Federal Reserve’s interest rate outlook has punctured equities, forex, and the bond markets the past week and a half with massive volatility. If there is a gap between the inflation outcomes and forecasted results, the U.S Dollar will be a lightning rod. A rate increase is a dead certainty in March, but if today’s inflation numbers are stronger than expected – it would heighten the possibility of another increase in June or July. Wall Street is expected to open with gains via indications from the Future Markets, but traders should be ready for a whirlwind day as data is digested.
E.U Industrial Production Strong, Euro, and Pound Choppy Early
While the Flash Gross Domestic Product results from the European Union met their target with a gain of 0.6%, it was Industrial Production numbers from the continent which stood out with a climb of 0.4% compared to the forecasted increase of only 0.1%. European equities have advanced this morning, and the Euro has lost a bit of value to the U.S Dollar as it trades near 1.2350. The Pound has also experienced choppy conditions early in forex.
Crude Oil Facing Headwinds, Speculators Ready for Active Markets
While Gold has grabbed the headlines with a climb early this week, Crude Oil has not been shy to grab attention either. U.S supply numbers will be released for the commodity today. U.S Crude Oil has experienced headwinds and is below 59.00 Dollars a barrel. Speculators will be active in the coming hours and fast trading is a certainty.
U.S Inflation Data Set for Major Impact, CPI & Retail Sales Figures On Plate
The U.S Consumer Price Index data which will be released at 13:30 GMT is being heavily anticipated by global traders and will impact the broad markets.
- 13:30 PM GMT U.S, Core Consumer Price Index
- 13:30 PM GMT U.S, Retail Sales
- 15:30 PM GMT U.S, Crude Oil Inventories
Yaron Mazor is a senior analyst at SuperTraderTV.
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This article was originally posted on FX Empire
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