Cautious gains have been seen on European exchanges and Wall Street is expected to open higher. However, the broad markets and forex will react quickly to the Consumer Price Index numbers coming from the U.S soon and volatility could erupt if there are surprises.
Speculators Wagering on Federal Reserve, Markets Could Turn on a Dime
Global equities have traced higher after a mixed day of results in Asia, as investors brace for the important Consumer Price Index statistics from the States. European Indexes have been positive thus far, and Wall Street is expected to open with gains. However, things may reverse quickly if there is a surprise via the U.S inflation data. Last Friday’s Average Hourly Earnings came in below its estimate, which may have some speculators today wagering on weaker inflation from the States. But should the data prove strong it would certainly solidify the aggressive stance which has been coming from the U.S Federal Reserve. The U.S central bank will hold a monetary policy meeting in approximately ten days.
Forex Volatility a Possibility this Afternoon, China Industrial Data Wednesday
The U.S Dollar could turn bullish if inflation data is better than anticipated. However, if the forecasted gains of 0.2% are met, the U.S Dollar and major currencies could resume their known trading realms which have been quiet the past couple of sessions. It will be a busy afternoon and evening for global market participants. Forex has seen consolidated action this morning. Investors should also keep in mind Industrial Production numbers will come from China early tomorrow, and Germany will release potentially intriguing CPI numbers on Wednesday.
U.S Inflation Figures Awaited by Commodity Traders, Gold Struggling
Gold has struggled this morning and is near 1318.00 U.S Dollars per ounce. The commodity markets have proven cautious as investors have sat on the sidelines and wait for the critical results from the U.S inflation figures.
Large Impact Anticipated via U.S CPI, Retail Sales Tomorrow from States
The Consumer Price Index data will be released shortly at 12:30 GMT, and have an impact on the broad markets globally.
- 12:30 PM GMT U.S, Consumer Price Index
- 12:30 PM GMT U.S, Core Consumer Price Index