China January CPI 0.2% y/y (expected 0.4%)

💡 DMK Insight

China’s inflation data is a big deal for global markets, especially with PPI at +0.4%. When inflation misses forecasts, it can signal weaker demand and impact commodities and currencies tied to Chinese growth. Traders should keep an eye on how this affects the yuan and related assets like copper and oil, which often react to shifts in Chinese economic health. If PPI continues to show deflationary trends, we might see a ripple effect across global supply chains, potentially leading to lower prices in commodities. Watch for key levels in the yuan against the dollar; a break below recent support could trigger further selling pressure. Also, keep an eye on upcoming economic indicators from China that could provide more context around this inflation miss. The immediate focus should be on how market participants, especially institutions, react to this data in the coming days.