If clarity arrives that inflation is waning, then rates can come downIS uncomfortable front-loading rate cutsNeeds to see more sustained progress on cooling inflationMeasure of job market have shown pretty steady coolingRates can go down a fair bit as long as we know we’re heading back to 2% inflationIt doesn’t sound like he’s opposed to another cut in January if the data cooperates. The pricing is still at 25% for a Jan cut.He said previously that his dot plot was below the median. This article was written by Adam Button at investinglive.com. 🔗 Source 💡 DMK Insight Inflation signals are shifting, and here’s why that matters for traders: if we see clear evidence that inflation is cooling, interest rates could drop significantly, impacting everything from equities to crypto. The current job market indicators suggest a steady cooling, which could pave the way for the Fed to consider rate cuts. Traders should keep an eye on inflation metrics and employment data as these will be pivotal in shaping monetary policy. If inflation trends towards the 2% target, we could see a bullish environment for risk assets. However, the market’s reaction to any hints of rate cuts could be volatile, especially in the short term. But here’s the flip side: if inflation proves stickier than expected, or if the job market shows unexpected strength, we might see rates held steady or even increased, which could negatively impact asset prices. Watch for key inflation reports and employment figures in the coming weeks, as these will be crucial for gauging market direction. 📮 Takeaway Monitor upcoming inflation and job market reports closely; a shift towards 2% inflation could trigger significant rate cuts, impacting risk assets positively.

The GBPUSD pair has transformed into a technical battleground as the trading week nears its close. A combination of a divided Bank of England (BoE) and a cooling US inflation report has created a “whipsaw” environment, leaving the price resting precariously on a significant layer of technical support.The BoE Catalyst: A narrow 5-4 vote for a “hawkish cut” by the Bank of England initially sparked Sterling strength, signaling that the path to future rate cuts remains steep.The CPI Whipsaw: A soft US CPI print (2.7%) sent the pair to a multi-week high of 1.3446 before a massive retracement saw the pair surrender all daily gains.The Technical Floor: The price is currently testing a “cluster” of four major moving averages between 1.3348 and 1.3380, a zone that will define the trend for the Friday close.Breaking Down the Momentum: From Hawkish Cuts to Soft CPIThe initial leg of the GBPUSD rally was fundamentally driven. The Bank of England’s decision to cut rates—but with a clear 5-4 split—indicated to the markets that the BoE is not in a rush to ease aggressively. This “hawkish lean” gave the British Pound a head start against a softening Greenback.Later, the US Consumer Price Index (CPI) added fuel to the fire. The weaker-than-expected inflation data triggered a sharp sell-off in the US Dollar, propelling the “Cable” above a series of key daily and hourly moving averages. This move saw the pair challenge the highs of the last two weeks, specifically testing the Tuesday peak near 1.3455.The “Moving Average Cluster” BarometerDespite the breakout, momentum failed to hold. The pair has retraced back into a dense zone where four critical moving averages are currently overlapping. This “cluster” acts as a massive technical pivot point:100-Hour MA: 1.33804 (The current immediate ceiling)200-Hour MA: 1.33640100-Day MA: 1.33616200-Day MA: 1.33488 (The ultimate floor)As long as the price remains within or above this zone, the “Up and Down” volatility theme persists. The price action today reached as low as 1.3370 before stabilizing slightly, keeping the market in a state of high suspense.The Roadmap: What to Watch for the Friday CloseAs we transition into the final session of the week, the cluster of moving averages will serve as the primary barometer for directional bias.The Bullish ScenarioFor the buyers to reclaim the driver’s seat, they must keep the price sustained above the 1.33804 (100-hour MA). A push above the 1.3405 swing area is required to confirm that the bears have been flushed out. If successful, the door opens for another run toward the recent highs at 1.34526.The Bearish ScenarioIf the sellers gain enough traction to break below the bottom of the cluster at 1.33488 (200-day MA), the technical picture turns decidedly bearish. A break here would likely trigger a retest of the weekly low at 1.33118, with a secondary target at last week’s low and the key 38.2% Fibonacci retracement level of 1.32833.Watch the Video AnalysisIn the video above, Greg Michalowski, author ofAttacking Currency Trends, provides a deep dive into these GBPUSD technical levels. He breaks down the real-time price action, helps you define the bias, the risk, and the specific targets that will matter most today and going forward.Be aware. Be prepared. This article was written by Greg Michalowski at investinglive.com. 🔗 Source 💡 DMK Insight GBPUSD is at a critical juncture, and here’s why you should care: the pair’s current positioning reflects a tug-of-war between the BoE’s mixed signals and easing US inflation. With the price hovering near key support levels, traders need to watch for potential breakouts or reversals. The divided stance of the Bank of England complicates the outlook, as differing opinions on interest rates could lead to volatility. If the pair breaks below this support, we could see a sharp decline, while a bounce could signal a short-term rally. Keep an eye on the upcoming economic data releases, as they could provide the catalyst for the next move. Also, consider how this might affect correlated assets like EURUSD, which often mirrors GBPUSD movements. The real story here is that traders should prepare for rapid shifts in sentiment as market participants react to new information from both sides of the Atlantic. 📮 Takeaway Watch GBPUSD closely; a break below current support could lead to significant downside, while a bounce may offer a short-term buying opportunity.

EPS, revenue and margins all beat expectations Cost discipline and efficiency gains drove upside FY EPS guidance floor raised; capex unchangedFedEx delivered a strong fiscal second-quarter performance, beating expectations across earnings, revenue and margins, as cost discipline and improved network efficiency more than offset a still-muted global demand backdrop.The parcel delivery group reported adjusted earnings per share of $4.82, comfortably above consensus expectations of $4.12, driven by stronger operating leverage and continued progress under its multi-year efficiency and network optimisation initiatives. Revenue rose to $23.5bn, ahead of forecasts for $22.8bn, while adjusted operating income climbed to $1.61bn, beating estimates of $1.36bn.Adjusted operating margin improved to 6.9%, versus expectations of 6.07%, reflecting better cost absorption, productivity gains and tighter expense controls. Management highlighted benefits from ongoing transformation efforts, including structural cost reductions, route optimisation and improved asset utilisation.At the divisional level, Federal Express revenue came in at $20.43bn, exceeding expectations of $19.72bn, supported by improved yields and efficiency gains, even as overall shipment volumes remained uneven across regions. FedEx Freight revenue was $2.14bn, broadly in line with estimates, with management noting stabilising trends in the U.S. industrial economy.Looking ahead, FedEx lifted the lower end of its full-year adjusted EPS guidance, now forecasting $17.80–$19.00, compared with a prior range of $17.20–$19.00, signalling confidence in margin resilience and execution momentum. Capital expenditure guidance was left unchanged at $4.5bn, in line with expectations, underscoring continued discipline on investment while prioritising efficiency-enhancing projects.Overall, the results reinforce FedEx’s narrative that self-help measures and structural improvements are cushioning the impact of softer macro conditions, positioning the company for stronger earnings leverage should volumes recover. This article was written by Eamonn Sheridan at investinglive.com. 🔗 Source 💡 DMK Insight FedEx’s strong fiscal second-quarter results are a game changer for logistics stocks right now. With earnings, revenue, and margins all beating expectations, traders should take note of the raised EPS guidance floor. This signals not just resilience but also effective cost management in a challenging demand environment. The focus on efficiency could set a precedent for other companies in the logistics and transport sectors, potentially boosting their stock performance as well. Watch for how this might ripple through related sectors like e-commerce and freight, as improved margins could lead to increased investment and consumer confidence. Key levels to monitor would be FedEx’s stock performance against its previous highs, as a sustained rally could indicate broader market sentiment shifting positively. Keep an eye on the next earnings reports from competitors; they could either validate FedEx’s strategy or highlight weaknesses in their own operations, impacting stock prices significantly. 📮 Takeaway Watch FedEx’s stock for potential upward movement; a sustained rally could indicate broader confidence in logistics, especially if competitors follow suit.

Major US indices delivered a powerful performance on Thursday, snapping a four-session losing streak. Investors were fueled by a “double jolt” of optimism: a cooling inflation report and robust earnings from the semiconductor sector. The lower-than-expected CPI data has successfully recalibrated market expectations for the Federal Reserve’s interest rate path heading into early 2026.Inflation Cooled: The US CPI report showed inflation slowing to 2.7% year-over-year, coming in lower than the 3.1% forecast and marking a significant multi-month low.Tech Power: Strong earnings from Micron Technology relieved pressure on the AI and chip sectors, helping the Nasdaq outperform the broader market.Rate Cut Hopes: The “inflation miss” has boosted confidence that the Federal Reserve may implement more aggressive rate cuts in the coming year.Major U.S. Indices PerformanceGrowth-oriented indices led the charge today, with the Nasdaq Composite reclaiming the psychological 23,000 level.Sector Analysis: Tech and Telecom LeadThe market advance was largely lopsided toward high-beta and growth sectors as capital rotated out of defensive holdings.Growth Leaders: Information Technology (+1.41%) and Telecommunication Services (+1.48%) were the clear winners, benefiting from the rebound in AI-related stocks.Yield Sensitivity: Utilities gained +1.08% as Treasury yields softened following the CPI data.Defensive Laggards: Consumer Staples (-0.68%) and Real Estate (-0.62%) faced selling pressure as investors moved back into “risk-on” assets.Global and Commodity MarketsThe “risk-on” sentiment extended to European equity markets, while commodities showed mixed results.European Markets: Strong gains were seen in Spain’s IBEX 35 (+1.15%) and Germany’s DAX (+1.00%) as global inflation fears eased.Commodities: Gold settled slightly lower at $4,332.78 (-0.14%) as the demand for safety waned. Silver fill $0.84 or -1.28% to $65.35 theCryptocurrency: Bitcoin (BTCUSD) tracked lower alongside some commodities, finishing the session at $85,070 (-1.33%). This article was written by Greg Michalowski at investinglive.com. 🔗 Source 💡 DMK Insight US indices just broke a four-day slump, and here’s why that matters: The recent CPI report showing cooling inflation is a game changer for traders. It not only eases fears about aggressive rate hikes from the Fed but also shifts sentiment towards risk assets. Coupled with strong earnings from the semiconductor sector, this could signal a broader market recovery. Traders should watch for a potential breakout above key resistance levels, particularly in tech stocks, which often lead market rallies. If indices can hold above their recent highs, we might see a bullish trend develop. But don’t ignore the flip side: if the Fed decides to maintain a hawkish stance despite this data, we could see a quick reversal. Keep an eye on the upcoming Fed meetings and any comments from officials that could sway market sentiment. For now, the focus should be on the tech sector, especially semiconductor stocks, as they could drive further gains. Watch for the Nasdaq to hold above its 50-day moving average for confirmation of this bullish momentum. 📮 Takeaway Monitor the Nasdaq’s performance around its 50-day moving average; a sustained hold above this level could signal a bullish trend following the recent CPI data.

US November CPI 2.7% y/y vs 3.1% expectedECB leaves rates unchanged at 2.00% as expected, but lifts 2026 inflation forecastBank of England rate decision: A quarter-point rate cut as expectedUS initial jobless claims 224K versus 225K estimate.Fed’s Goolsbee: The latest inflation data was favorableECB sources report: Policymakers had no appetite to take rate cut off the tableCarney: Sectoral deals are unlikely, talks likely to roll into USMCA reviewBOE’s Bailey: I’m ‘very encouraged’ by progress in hitting inflation targetECB’s Lagarde: Economy resilient, service-led growth expected to continueMarkets:WTI crude flat at $56.04US 10-year yields down 3.3 bps to 4.12%Gold down $10 to $4330S&P 500 up 0.8%EUR lags, AUD leadsFor such a lively day in terms of economic data, the FX market was surprisingly flat at the finish. The moves have been limited to 16 pips or less, with a modest decline in the euro as the most-notable move. It came as an ECB sources report following the decision highlighted that the governing council isn’t ready to let go of dovish optionality, given a number of risks to growth next year.The CPI report sparked some serious confusion. The big downside miss on headline and core initially sparked USD selling but skepticism arrived shortly afterwards. The BLS chose not to estimate a number of items and instead left them as zeros for October’s data. This is the first real report since the government shutdown and the inability to collect data during that period forced a series of assumptions. For what it’s worth, two-year yields are virtually flat since the report even with Goolsbee offering a dovish take.The Bank of England decision was not a big surprise but initially led to some good sized GBP bids as cable ran to 1.3448 in a nearly 1 cent rally. It couldn’t hold on though and gave the vast majority back, in part due to some more-dovish comments from Bailey later.Gold went on a $40 round trip to $4371 and back down to $4331 while silver cooled a tad from its earlier record.The big winner on the day was stocks in part due to a huge revenue beat from Micron. Megacap tech was bid and the Nasdaq led the way in a partial reversal following four days of declines. Is Santa finally arriving to the market? Fedex reported after the bell and the early indications are 4% and that’s good news from the economic bellwether. This article was written by Adam Button at investinglive.com. 🔗 Source 💡 DMK Insight The latest US CPI data showing 2.7% y/y is a game changer for traders: it’s below expectations and could shift Fed policy. With the ECB holding rates steady at 2.00% and raising its 2026 inflation forecast, the divergence in monetary policy between the US and Europe is becoming clearer. This could lead to a stronger dollar against the euro in the near term. The Bank of England’s quarter-point cut aligns with expectations but highlights a cautious approach to inflation, which could affect GBP volatility. Keep an eye on the initial jobless claims at 224K; if this trend continues, it may signal underlying labor market strength, potentially influencing Fed decisions. Here’s the thing: while the CPI drop is good news, it doesn’t mean the Fed will pivot immediately. Traders should watch for any comments from Fed officials in the coming days for clues on future rate hikes. The key levels to monitor are the 1.05 mark for EUR/USD and 1.25 for GBP/USD, as these could indicate shifts in sentiment based on upcoming economic data. 📮 Takeaway Watch the 1.05 level for EUR/USD and 1.25 for GBP/USD; these could signal shifts in sentiment based on upcoming Fed comments.

New Zealand recorded a monthly trade deficit of NZ$163 million in November, as import growth slightly outpaced exports, according to data released by Statistics New Zealand. While the deficit was relatively modest in monthly terms, the figures highlight the ongoing challenge of balancing external trade amid uneven global demand and domestic consumption trends.Total exports rose to NZ$6.99bn in November, reflecting steady shipments across key commodity categories, including dairy and agricultural products. However, imports climbed to NZ$7.15bn, resulting in the net deficit for the month. The strength in imports suggests resilient domestic demand and ongoing investment needs, though it also points to continued pressure on the external balance.On an annual basis, New Zealand’s trade deficit widened to NZ$2.06bn, underscoring the structural imbalance between export earnings and import spending over the past year. While export performance has improved from earlier lows, it has not yet been sufficient to fully offset higher import volumes and prices, particularly for capital goods and energy-related items.For financial markets, the trade data offers a mixed signal. A narrower-than-feared monthly deficit may provide some reassurance around near-term external stability, but the persistent annual shortfall reinforces the view that net trade is unlikely to be a strong driver of economic growth in the near term. Currency markets tend to focus less on the headline deficit and more on broader macro dynamics, including interest-rate expectations and global risk sentiment.From a policy perspective, the data is unlikely to materially alter the Reserve Bank of New Zealand’s near-term outlook on its own. However, sustained trade imbalances could remain a background consideration as policymakers assess growth momentum, inflation pressures and the transmission of monetary policy through the economy.Overall, November’s trade figures point to steady but unspectacular export performance, offset by firm import demand, leaving New Zealand’s external position modestly in deficit as the year draws to a close. This article was written by Eamonn Sheridan at investinglive.com. 🔗 Source 💡 DMK Insight New Zealand’s trade deficit of NZ$163 million in November signals potential volatility for the NZD. As import growth outstrips exports, traders should be wary of the NZD’s susceptibility to external shocks. This deficit, while modest, reflects broader economic challenges, including uneven global demand that could impact the currency’s strength. If this trend continues, it could lead to downward pressure on the NZD, especially against major pairs like the AUD and USD. Watch for any shifts in export performance or import trends in the coming months, as these will be crucial indicators of New Zealand’s economic health. Key levels to monitor include support around 0.5900 against the USD, which, if broken, could trigger further selling pressure. Keep an eye on upcoming trade data releases and global economic indicators that might influence market sentiment towards the NZD. 📮 Takeaway Watch the NZD closely; a sustained trade deficit could push it below 0.5900 against the USD, signaling further weakness.

Summary BoJ expected to hike rates to 0.75% Real rates remain negative despite move Yen reaction hinges on guidance, not decision A crowded global macro calendar lies ahead, but for markets the clear focal point is the Bank of Japan’s policy decision, followed closely by Governor Kazuo Ueda’s press conference. Together, the two events are expected to shape near-term expectations for Japanese monetary policy and the yen.Unlike most major central banks, the BoJ does not announce its decision at a fixed time. Instead, the statement is released once deliberations conclude, a system that contrasts with the clock-driven approach of its global peers. In practice, the decision typically lands between 0230 and 0330 GMT (2130–2230 US Eastern time), a window closely watched by global traders.The BoJ is widely expected to deliver a 25bp rate hike to 0.75%, which would mark its highest policy rate in roughly three decades. An historic occasion! Despite the near-certainty of a move, expectations for a strongly hawkish signal from Governor Ueda remain low. Policymakers are acutely sensitive to the recent rise in Japanese government bond yields and the broader impact of higher borrowing costs on domestic financial conditions.Even after the expected hike, the BoJ continues to judge real interest rates as firmly negative, reinforcing the view that policy will remain accommodative in real terms and that any further tightening will proceed cautiously. While market pricing suggests another rate increase as early as June or July next year, a growing number of analysts argue this timeline may be too aggressive.An alternative view places the next hike closer to October 2026, giving policymakers time to assess how higher rates feed through to bank lending, corporate financing, household consumption and capital expenditure. Spring wage negotiations and yen dynamics will be key inputs into that assessment.Debate around Japan’s neutral rate has also resurfaced, but officials continue to stress it is a conceptual range rather than a fixed target. The BoJ is expected to maintain its 1–2.5% neutral estimate, implying no urgency to accelerate tightening.From a market perspective, the fully priced nature of this week’s move reduces the risk of sharp volatility. Unlike August 2024, when a surprise policy shift triggered broad yen carry unwinds, currency moves this time are likely to hinge on forward guidance rather than the hike itself.USD/JPY update, the pair topped out again this week circa 156.00: This article was written by Eamonn Sheridan at investinglive.com. 🔗 Source 💡 DMK Insight The Bank of Japan’s anticipated rate hike to 0.75% is a pivotal moment for traders. While this move signals a shift in monetary policy, the real impact hinges on the guidance provided by Governor Kazuo Ueda. Traders should keep a close eye on how the yen reacts post-announcement, as a lack of strong forward guidance could lead to volatility. Negative real rates have persisted, meaning even with a hike, the yen’s strength may be limited unless accompanied by a hawkish outlook. This decision comes amid a crowded global macro calendar, which could amplify market reactions. If the yen weakens despite the hike, it could signal broader risk-off sentiment, impacting correlated assets like Japanese equities and global commodities. Watch for key resistance levels in the yen, particularly around recent highs, as they could provide insight into market sentiment following the announcement. 📮 Takeaway Monitor the yen’s reaction closely after the BoJ’s rate hike; guidance from Ueda will be crucial for determining market direction.

Summary PM office source raises nuclear weapons debate Comments clash with Japan’s non-nuclear tradition Security concerns driving renewed discussion Japan’s long-standing stance on nuclear weapons has come under renewed scrutiny after a source within the prime minister’s office suggested the country may ultimately need to possess nuclear arms, comments that risk sparking political backlash both domestically and internationally. Kyodo reporting. Speaking to reporters on Thursday, the source — who is involved in shaping security policy under Prime Minister Sanae Takaichi’s government — said Japan should consider nuclear weapons in principle, while simultaneously acknowledging that such a move would be highly impractical. “I think we should possess nuclear weapons,” the source said, adding that “in the end, we can only rely on ourselves,” while stressing that nuclear armament is not something that could be achieved quickly.The remarks come as Prime Minister Takaichi, known for her hawkish views on national security, weighs whether to review Japan’s Three Non-Nuclear Principles, which prohibit the possession, production, or introduction of nuclear weapons. First articulated by then-Prime Minister Eisaku Sato in 1967, the principles became a cornerstone of Japan’s postwar identity. Sato later received the Nobel Peace Prize in 1974 for his role in promoting nuclear restraint.Any attempt to revisit Japan’s nuclear policy remains deeply controversial. Public opposition is rooted in the country’s pacifist constitution and its unique historical experience as the only nation to have suffered atomic bombings. The issue also conflicts with Japan’s longstanding diplomatic commitment to nuclear disarmament, a cause strongly supported by survivors of Hiroshima and Nagasaki.At the same time, critics note that Japan already relies on the U.S. nuclear umbrella for deterrence, a dependence some argue sits uneasily alongside the non-nuclear principles. This tension has periodically resurfaced during periods of heightened regional security risk.The prime minister’s office source said there had been no direct discussion with Takaichi on formally revising the principles. Still, the comments have revived memories of past political fallout: in 1999, then parliamentary vice defence minister Shingo Nishimura was dismissed after suggesting Japan consider nuclear armament.For now, the remarks underscore the growing strain between Japan’s historical pacifism and evolving regional security realities.—When these guys are your near neighbor … Anyway, more near term, the BoJ is set to make history today:Economic and event calendar in Asia December 19, 2025 – Bank of Japan rate hike expected This article was written by Eamonn Sheridan at investinglive.com. 🔗 Source 💡 DMK Insight Japan’s potential shift towards nuclear armament is a game-changer for regional security dynamics. Traders should pay attention to how this debate influences the yen and Japanese equities. A move towards nuclear capability could heighten tensions with neighboring countries, potentially impacting trade relations and investor sentiment. If the yen weakens in response to increased geopolitical risk, we might see a flight to safe-haven assets like gold or the US dollar. Keep an eye on the Nikkei 225 index as it could react sharply to any developments in this discussion. On the flip side, if Japan’s government reassures markets by reaffirming its non-nuclear stance, we might see a stabilization in the yen and a boost in Japanese stocks. Watch for key statements from government officials over the coming weeks, as they could provide clarity on Japan’s defense policy and its implications for the broader market. 📮 Takeaway Monitor the Nikkei 225 and the yen for volatility as Japan’s nuclear debate unfolds; key government statements will be crucial.

Summary Reports suggest Cybercab testing on public roads Austin seen as key autonomy testing hub Autonomy central to Tesla’s long-term narrative Shares of Tesla are likely to draw fresh attention after social media reports suggested the company’s long-awaited Cybercab vehicle has been spotted testing on public roads in Austin, Texas for the first time. While Tesla has not formally confirmed the sightings, the reports have fuelled speculation that development of its dedicated autonomous ride-hailing vehicle may be entering a more advanced testing phase.According to posts circulating on X, the vehicle appeared to be operating on open roads rather than closed or private testing areas, a step that would mark a meaningful milestone for Tesla’s autonomous ambitions. Austin has become a central hub for Tesla’s self-driving efforts, hosting both its headquarters and extensive testing operations, and is viewed as a favourable regulatory environment for autonomous vehicle trials.The Cybercab concept, unveiled earlier this year, is designed as a purpose-built, fully autonomous vehicle with no steering wheel or pedals, aimed at powering a future robotaxi network. Tesla has positioned the project as a key pillar of its long-term growth strategy, arguing that autonomy and mobility services could eventually eclipse vehicle sales as a revenue driver.Market focus has increasingly shifted toward tangible progress on autonomy following years of ambitious timelines from Chief Executive Elon Musk. Public-road testing, if confirmed, would be seen as an incremental but important step toward regulatory approval and broader commercial deployment, though significant hurdles remain.Regulatory scrutiny, safety validation and real-world performance data are expected to be decisive factors. U.S. regulators have taken a more cautious stance on autonomous driving claims in recent years, and any expansion of testing will likely be closely monitored at both state and federal levels.From an investor perspective, the reports underline Tesla’s effort to re-anchor its valuation narrative around artificial intelligence and autonomy at a time when global EV demand growth has moderated. While near-term financial impact is limited, progress on Cybercab development could influence longer-term expectations for Tesla’s addressable market and margin potential.For now, markets await official confirmation from Tesla, with sentiment likely to remain sensitive to further evidence of real-world testing and regulatory engagement. This article was written by Eamonn Sheridan at investinglive.com. 🔗 Source 💡 DMK Insight Tesla’s Cybercab testing in Austin could be a game changer for its stock: here’s why. The buzz around the Cybercab is more than just a social media moment; it signals Tesla’s commitment to advancing its autonomy narrative, which has been a cornerstone of its long-term strategy. As the company ramps up testing in Austin, a city known for its tech-savvy population and regulatory environment conducive to innovation, traders should watch for potential volatility in Tesla shares. If successful, this could lead to increased investor confidence and a bullish sentiment around the stock, especially as we approach quarterly earnings reports. But don’t overlook the risks. If the testing faces regulatory hurdles or technical setbacks, it could dampen enthusiasm and lead to a sell-off. Keep an eye on key price levels—if Tesla shares break above recent resistance, it could signal a strong upward trend. Conversely, a drop below support levels might indicate a bearish reversal. Watch for updates on testing progress and any regulatory news that could impact timelines for the Cybercab rollout. 📮 Takeaway Monitor Tesla’s stock closely; a breakout above recent resistance could signal a bullish trend, while any setbacks in Cybercab testing might trigger a sell-off.

Summary Goldman sees CPI having limited Fed impact December data more important for January meeting Core PCE disinflation remains intactThe latest U.S. consumer price index (CPI) data released on 18 December is unlikely to materially alter the Federal Reserve’s near-term policy outlook, according to Goldman Sachs, which argues policymakers will instead focus on inflation data still to come ahead of the January FOMC meeting.In a note following the CPI release, Goldman said today’s reading is “unlikely to move the needle” for the Fed, despite headline and core measures continuing to show progress on disinflation. The bank emphasised that December inflation data, which will be released just before the Fed’s January meeting, will carry greater significance for policymakers assessing whether price pressures are cooling in a sustained manner.Goldman’s analysis suggests that recent downside surprises in core CPI have been driven largely by technical and timing-related factors rather than a broad-based easing in underlying inflation. Specifically, the firm points to a sizeable drag from shelter components, stemming from methodological issues related to missing October data, as well as softer core goods prices due to later-than-usual price collection in November.Looking beyond CPI, Goldman estimates that the core Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, rose by an average of 0.12% month-on-month across October and November. The bank estimates a 0.10% increase in October and 0.14% in November, which would lower the year-on-year core PCE rate to 2.66% in November, down from 2.83% in September.(As an aside, there is no official release date yet set for the November PCE and core PCE data).While this trajectory supports the broader disinflation narrative, Goldman cautions against over-interpreting recent CPI softness. The firm notes that the Bureau of Labor Statistics has not yet clarified how it will address the identified distortions, raising the possibility that some of the recent drag could reverse in coming months.Goldman expects part of the shelter weakness to unwind in future releases, while goods inflation could re-accelerate modestly in December. As a result, the bank sees the Fed remaining patient, with policymakers likely to rely on a broader run of data rather than a single CPI print when shaping policy decisions in early 2026. This article was written by Eamonn Sheridan at investinglive.com. 🔗 Source 💡 DMK Insight Goldman’s take on CPI suggests traders shouldn’t expect immediate Fed shifts, but December’s data could set the stage for January’s meeting. With inflation pressures easing, the focus now shifts to the Core PCE index, which remains a key indicator for the Fed’s next moves. If the Core PCE continues its disinflation trend, it could bolster the case for a pause in rate hikes. Traders should watch for any significant deviations in the upcoming data that could sway market sentiment. The broader context here is that while CPI may not trigger immediate action, it reflects ongoing economic dynamics that could influence risk assets, particularly equities and bonds. Keep an eye on how these markets react as we approach the January meeting, especially if Core PCE data surprises to the upside or downside. Here’s the thing: while mainstream narratives might downplay the importance of CPI, the real story is how it interacts with other economic indicators. A stronger-than-expected Core PCE could reignite fears of further tightening, impacting not just the dollar but also commodities and crypto markets. Watch for volatility around the next data release, as it could create trading opportunities. 📮 Takeaway Monitor the upcoming Core PCE data closely; a significant shift could impact Fed policy and market volatility ahead of January’s meeting.