Live Coverage: US CPI inflation may trigger Gold recovery, USD correction

Has the door closed on the 50-bps cut? Not so fast. US Core CPI may still sway skeptic markets, rocking Gold, the US Dollar and indices. Live coverage. 

Join FXStreet Premium to ask analysts questions live, leverage actionable analysis and get Gold and signal alerts. 

CPI inflation lands on skeptical markets

No fewer than 254K jobs were created in September – leaving markets convinced that the strength of the US economy may even cause doves at the Federal Reserve (Fed) to prefer a smaller, 25-bps rate cut. However, if inflation falls, there is still room for some optimism about faster slashes to borrowing costs. 

The Consumer Price Index (CPI) is set to show an ongoing decline in inflation in September, allowing the world's most powerful central bank to take its foot off the pedal. 

While the Nonfarm Payrolls (NFP) is a challenge for traders – a good outcome lowers the chances of fast rate cuts but is good news for the economy – it's straightforward with inflation. 

A strong CPI report is Gold bearish, stocks bearish, US Dollar bullish.

A weak CPI report is Gold bullish, stocks bullish, US Dollar bearish. 

The No. 1 figure to watch is core CPI MoM, which is the best representation of what the Fed cares about – recent developments in underlying inflation. 

Live financial market coverage

FXStreet covers major economic releases in a live blog format, to provide readers an instant verdict of the data, rapid analysis of key assets, and for Premium members, the abilty to ask our experts questions in real time. 

FXStreet Premium 

FXStreet Premium provides subscribers access to analysts, exclusive actionable analysis, signals, Ed Ponsi's webinars, trade plans and a bullish/bearish indicator for Gold on critical events. Join FXStreet Premium here.