🚀 Could CPI be a turning point for the markets?
$XAU
Markets are waiting for the upcoming CPI data, and I think the most interesting scenario would be if the inflation numbers come in below expectations. It’s true that employment data for non-farm payrolls stronger than expected could give the Federal Reserve reason to be cautious, but the continued decline in inflation may be more important in shaping the next path for monetary policy.
If inflation is weaker than expected, markets may start pricing a more flexible stance from the Fed, especially if the components of core inflation cool off. In this case, we could see a drop in bond yields and a relative weakening of the dollar, which could support stocks and high-risk assets, including cryptocurrencies.
For my part, I lean cautiously bullish, but I won’t rely on the CPI figure alone. I’ll also watch core inflation, bond yields, the strength of the dollar, and the market’s reaction after the data is released.
📈 If CPI comes in below expectations, markets may have an opportunity for a strong upward move.
#CPIWatch
$XAU
Markets are waiting for the upcoming CPI data, and I think the most interesting scenario would be if the inflation numbers come in below expectations. It’s true that employment data for non-farm payrolls stronger than expected could give the Federal Reserve reason to be cautious, but the continued decline in inflation may be more important in shaping the next path for monetary policy.
If inflation is weaker than expected, markets may start pricing a more flexible stance from the Fed, especially if the components of core inflation cool off. In this case, we could see a drop in bond yields and a relative weakening of the dollar, which could support stocks and high-risk assets, including cryptocurrencies.
For my part, I lean cautiously bullish, but I won’t rely on the CPI figure alone. I’ll also watch core inflation, bond yields, the strength of the dollar, and the market’s reaction after the data is released.
📈 If CPI comes in below expectations, markets may have an opportunity for a strong upward move.
#CPIWatch