US inflation to hog the spotlight in trading today


content provided with permission by FXStreetRead full post at forexlive.com

US
CPI
year-on-year
(%)

And
that
will
keep
markets
in
a
bit
of
a
bind
until
we
get
to
the
release
later
in
the
day.
The
estimate
for
headline
annual
inflation
is
for
it
to
slow
to
3.1%.
Meanwhile,
core
annual
inflation
is
estimated
to
remain
at
3.4%

unchanged
from
May.
Either
way,
the
details
are
going
to
be
as
important
as
the
numbers
above.
So,
just
be
wary
of
that.

These

were
from
last
month.

As
much
as
markets
are
waiting
with
bated
breath
on
the
report,
it
might
end
up
being
a
case
of
it
not
changing
anything.

Traders
are
seeing
two
rate
cuts
by
year-end
for
the
Fed
now
and
it
will
take
a
real
surprise
to
shift
that
expectation.
It’s
kind
of
a
Goldilocks
position
for
the
Fed,
so
they’re
quite
fine
with
this.

I
mean,
we
already
saw
how
things
played
out
in
the
last
two
months.
It
all
starts
with
traders
reacting
to
the
inflation
numbers,
only
to
reverse
the
moves
in
the
days
later.

In
any
case,
the
waiting
and
anticipation
will
make
for
a
more
pensive
session
later
in
Europe.
So,
don’t
expect
major
moves
before
we
get
to
the
main
event
later
in
the
day.