US CPI Up Next
The June CPI readings scheduled for today have the potential to cause plenty of market volatility. While USD action has been somewhat muted since the mixed June jobs report, a strong reading today could rekindle the USD flame, putting the focus back on Fed tightening expectations. With both headline and core inflation forecast to have declined on the prior month, the bar for an upside surprise has been lowered.
Where to Trade US CPI?
USDCHF
If today’s data does surprise to the upside, it would once again clarify the monetary policy divergence (or policy expectation divergence at least) between the Fed and the SNB, which has reaffirmed its commitment to easing.
The breakout above the .9043 level saw price trading has high as .9271 before pulling back. While MACD and RSI have both turned lower, there is room for a fresh advance on ay data upside today which could see the pair breaking out to the topside once again. Look for fresh longs above .9189 targeting .9288 and .9356.
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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.