Today, investors are eagerly awaiting the evening release of key macroeconomic data from the USA, which has the potential to significantly impact the market. At 18:00 (Warsaw time), we will learn about inflation data, including the year-over-year CPI, which is forecasted to be 3.7% compared to the previous 3.3%. Simultaneously, data on Core CPI month-over-month will be released, with a forecast of 0.3%, and CPI month-over-month, where an increase of 0.6% is expected compared to the previous 0.9%. These results will be crucial for assessing inflationary pressures in the USA and may influence expectations regarding future Fed decisions.
Yesterday's session did not bring any significant high-impact events, which made the markets particularly sensitive to any other signals that could affect volatility. Our earlier analyses indicated a stable, albeit slightly greedy market sentiment, suggesting investors' willingness to take on more risk. However, today's inflation data has the potential to test this optimism. In the context of rising inflation, concerns about future Fed decisions regarding interest rates may intensify, impacting asset valuations in the markets.
For traders, this afternoon will be crucial, especially at 18:00 (Warsaw time), when the release of CPI data may trigger significant volatility in the markets. It is important to pay attention to how these results will influence expectations regarding Fed monetary policy, particularly in the context of the upcoming FOMC meeting. Today's data represent a key point in our narrative regarding inflationary pressures and potential actions by the central bank.
