Release of the US CPI data for March at 1:30 pm BST is a key event of the day. Reading is expected to show headline price growth accelerating from 1.7% YoY in February to 2.5% YoY in March. Core gauge is seen moving higher from 1.3 to 1.5% YoY. Fed has played down any price growth concerns recently, insisting that inflation pick-ups will be transitory. Low base effect from a year ago seems to support this effect. Of course, overshooting the target range would cause concerns to mount but even in this case Fed could play it down, saying that it now focuses on how inflation averages over a given period of time. Speaking of the Fed, a number of US central bankers will deliver a total of 7 speeches this afternoon and today's inflation data may be one of the topics addressed.
Inflation data and Fed speeches are likely to have an impact on USD, gold and possibly equity markets. Taking a look at gold, we can see that the commodity has enjoyed a recovery move over the past two weeks. However, the upward move was halted at the end of last week by the 50-session moving average (green line) and the upper limit of recent short-term trading range at $1,740. Higher than expected inflation in March could hurt gold prices as continued pick-up in price growth would justify launching a taper discussion.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
