Markets await inflation data as USD strength continues

Frank Walbaum

Important news this week

Wed, 14th, 14:30 CET US Core Consumer Price Index.

Thu, 15th, 02:30 CET AU Unemployment Rate.

Thu, 15th, 14:30 CET US Core Producer Price Index / Retail Sales.

Markets await inflation data as USD strength continues

The US Dollar continues to strengthen, while equity markets remain positive. Blue-chip stocks are also moving higher, with the Dow Jones recovering from support. Crypto is gaining ground, while Gold is correcting after a positive start and Silver continues to trade sideways. USDCAD is approaching resistance, with the 1.4280 zone remaining an important level to watch.

Markets appear to be waiting for a fresh catalyst, with US CPI on Wednesday followed by PPI and retail sales on Thursday. These releases could influence expectations for the Federal Reserve’s next policy steps and determine whether the current moves in currencies, equities and commodities can continue.

Market talk

The inflation data could set the tone for markets this week. A hotter-than-expected CPI reading could reinforce concerns that interest rates will remain elevated for longer, potentially supporting the Dollar while putting pressure on Gold and equity valuations. Softer inflation could ease those concerns and give risk assets further room to advance. Earnings season also begins to gather momentum, with major US banks among the companies reporting this week, offering fresh insight into the health of the US economy.

USD/CAD is approaching a key technical area around 1.4280. A clear break above resistance could extend the pair’s upward move, while a rejection could open the door to a correction. With several major US data releases ahead, traders may be reluctant to commit to a decisive direction before the numbers arrive.

Tendencies in the markets

Equities positive, USD positive, crypto positive, oil at support, metals correcting, JPY weak.

Author

Frank Walbaum

AUD/USD remains below 0.7000 amid light trading

AUD/USD fills a modest bearish gap on Monday, but remains below 0.7000 in the Asian session amid holiday-thinned liquidity. The US Dollar attempts a bounce even as US bond yields pull back from multi-year highs, limiting the pair. Moreover, diminishing odds of another RBA rate hike in November cap the Aussie.

USD/JPY hovers above 158.00 amid Japan/ US holiday

USD/JPY extends its range-bound price action into a new week, trading above 158.00 as bulls remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, softer US bond yields keep US Dollar bulls on the back foot and cap the pair's upside. However, geopolitical uncertainties could limit losses for the safe-haven buck amid thin liquidity due to a holiday in Japan and the US.

Gold sticks to modest losses; seems vulnerable below $4,200 on Fed hike bets

Gold extends its intraday retracement slide from a one-week high, hitting a fresh daily low around $4,170 during the early European session. The US Dollar attracts fresh buyers after a modest downtick amid the US Federal Reserve's hawkish outlook, which, in turn, is seen as weighing on the non-yielding bullion.

Pi Network Price Forecast: PI defends $0.0800 support as selling pressure mounts

Pi Network is trading in the red on Monday, hovering above $0.0800 as selling pressure mounts. PI token’s speculative demand is easing, with Open Interest below $9 million despite rising social chatter, hinting at panic-driven buzz among investors. The technical outlook for PI suggests a bearish bias, with the risk of breaking below the $0.0800 support level.

USD/INR: Deep in red below 96.00 as RBI rescues Indian Rupee

After opening significantly higher against the US Dollar (USD) on Monday, the Indian Rupee (INR) clings to recovery gains near 95.80. The pair remains undermined by the Reserve Bank of India’s (RBI) fresh measures to curb US Dollar demand, which has brought relief for the Indian currency.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?