US CPI expected to show a mild slowdown in inflation in January

💡 DMK Insight

CPI data’s coming out this Friday, and it could shake up the markets significantly. Traders need to keep an eye on inflation trends, especially after the recent volatility in both crypto and forex markets. A higher-than-expected CPI could lead to increased speculation about interest rate hikes, which typically strengthens the dollar and pressures risk assets like crypto. Conversely, if the CPI shows lower inflation, we might see a bullish sentiment across equities and crypto as traders anticipate a more dovish Fed. Watch for key levels in the dollar index and major crypto pairs; a breakout or breakdown could signal where the market’s heading next. Also, consider how institutions might react—if they perceive inflation risks rising, we could see a flight to safety. Here’s the thing: the CPI data is a major catalyst, and it’s worth monitoring how the market reacts in the hours following the release. Look for volatility spikes and adjust your positions accordingly.