News

US CPI due Friday – preview

Adam post a preview of the US inflation data due 11 January 2019 

Following up with some bank views on what to expect:

RBC:

  • Gasoline prices at the pump sank about -10% sequentially in December, and much sharper than the seasonal norm. Accordingly, we look for a -0.2% drop in headline CPI on the month. Core prices should come in at a more typical 0.2% as demand remained robust – evidenced by an extremely healthy run rate in retail chain-store sales which printed north of 9% y/y at the end of December. These monthly prints would slow the y/y rate in headline CPI to 1.8% from 2.2% while leaving the core pace unchanged at 2.2%

Deutsche Bank

  • “While the December CPI report may not be a game changer for the market’s perception of near-term hiking prospects, a solid print in line with our expectation (core CPI +0.20% month-over-month and 2.2% year-over-year) should keep Fed rate hikes in play this year if various uncertainties are resolved” 

Trump has his hands full with the wall and shutdown but he’ll spare a moment to urge JP not to hike any more if the need should arise. 

ForexLive

Articles You May Like

Oil remains elevated, boosted by production limits and declining stock
What time will the meaningful Brexit vote take place?
What Is The Best Forex Trading Platform For Beginners – Best Forex Trading Platform
China’s “stealth easing” spreading out – Bloomberg
EURUSD cracks lower. Buyers give up

Leave a Reply

Your email address will not be published. Required fields are marked *