Key Inflation Data
Inflation and interest rate hike will be the main agenda this week. Markets will anticipate the August CPI report and PPI inflation this coming Tuesday and Wednesday. The headline inflation seems to be slowing down with lower oil prices, and Feds aggressive interest hike. As both CPI and PPI soften, we might see a less hawkish Fed in the coming weeks.
Forex
DXY
-Bullish breakout attempt may have failed
-DXY closed under Monthly Moving Average with dollar forming into its consolidation signaling a potential reversal
-expecting inflation to cool down (with WTI prices dropping to under 90 dollars a barrel)
EURUSD
-EURUSD is looking for a strong close above the trend line.
-Market is testing July- August range, with ECB showing hawkish shift last Thursday.
XAUUSD
-Fed is expected to raise 50-75bps this month
-CPI inflation ease slightly previous month
US OIL
-Oil imports from China slowed considerably in August due to COVID restriction that disrupted the demand.
-A rebound on 81 price support on the trend line.
-Traders await European countries to resolve their energy crisis as oil prices could be higher in the coming winter.
Ru Yi
Financial Market Analyst
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