The upcoming US inflation data (CPI) will release in 2 hours, is expected to show a 2.5% annual inflation rate for May. According to Trading Economics, the forecast is 2.5%, with some analysts predicting potential fluctuations. If the actual figure comes in lower than expected, we might see significant gains in risk assets. Conversely, a higher-than-expected reading could lead to increased selling pressure.
Key Points to Watch:
CPI Forecast: 2.5% annual inflation rate for May
Potential Market Impact
Lower-than-expected CPI: Strong gains in risk assets
-Higher-than-expected CPI: Selling pressure and potential market downturn.
Monetary Policy Implications: The CPI figure may influence future monetary policy decisions, with potential implications for interest rates and economic growth
In the context of Trump's public push for changes in Jerome Powell and monetary policy, the CPI release could have significant implications for the markets. Keep in mind that market reactions can be unpredictable, and surprises can lead to increased volatility.