Release of the US CPI report for April is a key event of the day. Inflation report will be released at 1:30 pm BST and is expected to show a deceleration in headline and core price growth on a year-over-year basis. Expected deceleration can be, at least to some extent, reasoned with a more favorable base effect from a year ago. Major banks, like Societe Generale or ING, think that peak in consumer price growth may have been reached last month at 8.5%. However, those banks also think that a return to 2% Fed goal will not be quick and will take time. As current CPI levels are still very high, it is expected that the Fed will still deliver 50 basis point rate hikes in June, July and September.
1:30 pm BST - US, CPI inflation for April.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app-
Headline. Expected: 8.1% YoY. Previous: 8.5% YoY
-
Core. Expected: 6.0% YoY. Previous: 6.5% YoY
Release is likely to have an impact on the USD market. Taking a look at EURUSD chat at H1 interval, we can see that the main currency pair has been locked in a sideways move for over two weeks now. Moves of the pair have been largely confined to a 1.0490-1.0570 trading range. Pair pulled back from the upper limit of the range yesterday and tested 1.0530 swing area. However, bears were unable to break below and buyers took over. Pair recovered part of yesterday's drop, broke back above 50- and 200-hour moving averages, and is now looking towards another test of the upper limit of the range.
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
