#CPIWatch Nonfarm payrolls came in stronger than expected, which shows that the U.S. labor market is still relatively resilient. Now all eyes are on the upcoming CPI report. The key question is whether inflation will remain sticky enough to push the Federal Reserve toward another rate hike, or whether cooling price pressures will give the Fed a reason to hold rates.
In my view, the CPI data could be a major market-moving event. If inflation comes in hotter than expected, I would expect a more hawkish Fed outlook, which could create pressure on stocks and risk assets. On the other hand, a softer CPI could support stocks and gold as markets price in a more dovish policy path.
For now, I remain cautiously bullish but will wait for the actual CPI numbers before making a major move. Data, not emotion, should drive the trade. 📊
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