All eyes are on the US CPI data due today [Video]

Ipek Ozkardeskaya ipekScope

Sentiment was slightly better and the dollar was slightly lower on Tuesday on the back of a softer-than-expected PPI report from the US and on news that Donald Trump’s America First team would only ‘gradually’ increase tariffs on the rest of the world – if that’s any comfort.

All eyes are on the US CPI data due today. The headline inflation in the US is expected to have ticked higher from 2.7% to 2.9% in December, while core inflation is seen sticky near the 3.3% level. A higher-than-expected set of data could reverse yesterday’s selloff in the US dollar and weigh on treasuries and equities, while a softer-than-expected figure could help cooling the hawkish Fed expectations and let the US dollar give back field, and the treasuries and equities take a breather.

Elsewhere, the Eurozone countries are also releasing fresh updates to their inflation numbers today with the Eurozone aggregate figure for December due Friday, meanwhile the UK printed a set of lower-than-expected inflation figures this morning.

In energy, news that Israel and Hamas are nearing a ceasefire agreement before Trump’s inauguration helped cooling the rally but the geopolitical risks prevail.

Author

Ipek Ozkardeskaya

ipekScope

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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