Market participants eagerly await the release of the next US Consumer Price Index (CPI) on Tuesday, February 14, looking for a new catalyst for the direction of the Dollar. The MUFG economists they expect the dollar to be supported by good inflation data.
Headline and core inflation will increase by 0.5% and 0.4% respectively in January.
“US economists expect the US CPI for January to be stronger, ending the run of three weaker reports from late last year.”
“One of the main drivers of the expected rise in inflation in January has been the increase in used car prices earlier in the year. Bloomberg reported yesterday that average used car prices rose 2.5% in January , according to Manheim data. The current Bloomberg Consensus forecast is for headline and core inflation to rise 0.5% and 0.4% respectively in January.”
“A stronger inflation report would make it more difficult to resume the dollar’s downtrend in the short term, even if it is more due to one-off factors.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
