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Will Investors Get a Big Inflation Surprise?

Yaron Mazor

Forex was relatively quiet yesterday in anticipation of today’s key statistics. The Annual Budget Release will come from the U.K also.

Caution Ahead of U.S Inflation Numbers, U.S Dollar Set for Big Day

Asian equities have been mixed this morning with Japanese Index values rising, while Chinese composites have been fractionally lower. Results from Wall Street proved rather convoluted on Monday as the NASDAQ rose, but the Dow Jones and S&P lost a bit of ground. Investors worldwide are heavily anticipating the U.S Consumer Price Index data later today. A gain of 0.2% is expected from the broad and core inflation statistics. If the outcome is significantly above forecasts it could set off a firestorm in the broad markets. Stronger inflation could translate into higher values for the U.S Dollar, but if the data falls short the U.S Dollar could stumble against the major currencies.

Plenty of Important Data on the Way, Pound Should be Monitored

The broad markets will certainly react to the U.S data, and yesterday’s rather flat session which developed in forex showed a wait and see approach is being taken until the results are published. However, the Pound did show the ability to incrementally gain on Monday and is below the 1.39 level. The Annual Budget Release which is coming from the U.K in a few hours will impact the British currency. The next day and a half will provide plenty of insights globally, early on Wednesday key Industrial data will come from China and later tomorrow German inflation statistics will be released.

Dynamic Activity Expected for Gold, Speculative Forces Prepare Wagers

Gold is near 1319.00 U.S Dollars an ounce and could see dynamic activity in the coming hours as investors position themselves for the U.S data. Speculative forces may wager the precious metal could break through support levels today, but risk management must be part of their strategy.

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Critical U.S Inflation Data Ready to Impact, British Budget Report Today

The Core Consumer Price Index will be released at 12:30 GMT in the States and global investors will react to its results.

  • 11:30 AM GMT U.K, Annual Budget Release
  • 12:30 PM GMT U.S, Core Consumer Price Index

Yaron Mazor is a senior analyst at SuperTraderTV.

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This article was originally posted on FX Empire