CPI Data expected to show inflation holding above the Fed’s 2% target

💡 DMK Insight

The upcoming CPI report is crucial for traders, especially with inflation expectations hanging in the balance. If December’s CPI shows stability, it could reinforce the Fed’s current stance on interest rates, impacting both forex and crypto markets. Traders should watch for any surprises that could shift sentiment. A stable CPI might keep the dollar strong, affecting pairs like EUR/USD and GBP/USD. Conversely, if inflation ticks up unexpectedly, we could see volatility spike, particularly in risk assets like Bitcoin. Pay attention to the 13:30 GMT release; it could set the tone for the rest of the week. Remember, the market often reacts sharply to these reports, so be ready for potential swings.