Market may keep a holding pattern between now and FOMC – OCBC
|Market reaction to US CPI should be considered as contained after some initial choppy actions. Economists at OCBC Bank analyze market’s outlook after inflation data.
CPI outcome adds marginally to the risk that the median dot may be pushed higher
Overall, the CPI outcome supports the patience that Fed Chair Powell has been emphasising, but it is not enough to move the needle for the direction of monetary policy. That said, the CPI outcome adds marginally to the risk that the median dot may be pushed higher.
We do note that the December dot plot is skewed to the upside, in that two dots moving higher would be enough to move the median dot higher. Should this happen, it would be market moving.
Between now and FOMC, market may keep a holding pattern.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.