US CPI Up Next
Today’s US inflation print is drawing a huge amount of market attention. With hawkish expectations well anchored ahead of the upcoming July FOMC meeting traders are looking to today’s data for clues as to how the Fed is likely to act beyond July. With debate setting in over whether the Fed will press ahead with the current projected tightening or look to back off a little after July, today’s CPI result will be key for traders looking to position ahead of the FOMC meeting. If CPI is seen hitting or beating estimates, this will no doubt keep the focus firmly on further tightening, sending USD higher. Alternatively, a weaker reading today will put further focus on the prospect of a Fed pause after July.
Where to Trade Today’s US CPI?
Bitcoin
Bitcoin has suffered greatly this year as a result of the dramatic shift in Fed policy and market expectations regarding the Fed. BTC has plunged by more than 60% from the year’s highs and is currently sitting on support around the 20575 level. Despite the downtrend, price has been framed by a large falling wedge patter recently, suggesting potential for a bullish reversal. With that In mind, today’s data will likely be make or break for bitcoin. Should inflation hit or beat estimates and USD rallies, BTC is likely to break current lows, heading to 16660 next. On the other hand, should USD fall on today’s data we might see a sharp move higher through 24930 putting 37030 in focus next.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.