CPI

GBPUSD, EURJPY: Inflation indicators between the eurozone and the Japanese economy are due this week, following the jump in UK’s inflation rates next week, adding reversal potential to the dollar’s rally ahead of Trump’s presidency.

USDJPY Forecast: The bull run of the US Dollar Index has pushed the USDJPY back in the borders of its primary uptrend, and further volatility risks are on the horizon with the US CPI results.

With Kashkari throwing the word ‘pause’ into the mix ahead of a US CPI report, traders should brace themselves for further USD gains should it come in hotter than expected.

The Fed is seen as nearly 50/50 to cut interest rates again in December after Donald Trump and the Republicans secured a “Red Wave” last week - see what to expect from US CPI!

The update to the US CPI is anticipated to show the headline reading widening to 2.6% in October from 2.4% per annum the month prior.

EURUSD, Bitcoin Forecast: With Republicans in the lead, the dollar’s bull run and growing speculation around a deregulated crypto market are pushing Bitcoin toward the 100,000-checkpoint while pressuring EURUSD to 7-month lows.

Dow Jones Forecast: With renewed market optimism across indices, cryptocurrencies, and the US dollar following Trump’s win, the Dow Jones is hitting record highs, prompting analysis of potential upcoming resistance levels and the sustainability of this bullish momentum.

Crude Oil Week Ahead: With volatility still restrained post-US election and FOMC week, crude oil markets remain poised for a potential breakout as key events from OPEC, the IEA, and economic data from China and the US are on the horizon. The longer the price remains within this tight range, the more significant any upcoming breakout may be.

USD/JPY appears to be defending the advance following the better-than-expected US NFP report as it bounces back from a fresh weekly low (147.35).

The USD is surging and markets are betting that the RNZZ could cut rates by 100bp by December. Failure to do hint at such a move could see AUD/NZD track AUD/USD lower.

The headline reading for Euro Area inflation is seen narrowing to 2.0% in September from 2.2% the month prior, while the core CPI is expected to hold steady at 2.8%.

As we head into the second half of the week, all eyes are on some big macro events—today’s US inflation report and the European Central Bank’s rate decision tomorrow. After last week’s jobs data, I’m sticking with my bearish stance on the dollar ahead of the CPI release.

As the last major economic release ahead of next week’s Federal Reserve Monetary Policy meeting, the US CPI report may well decide which path Jerome Powell and Company choose.

EUR/USD has managed to recoup some of last week’s losses as we head into Friday’s nonfarm payroll report. But for it to stand any chance of to a fresh YTD high, US CPI likely needs to continue softening and the ECB surprise with a less-than-expected dovish cut on Thursday.

Traders may view any near-term GBP/USD dips toward the 50-day EMA near 1.2800 as buying opportunities.

With industrial data remaining weak in the Eurozone and after a dismal ZEW survey for Germany yesterday, you might be wondering what on earth are FX traders smoking by bidding up the EUR/USD?

Gold, EURUSD Analysis: Gold and EURUSD are both hovering near significant resistance levels ahead of today's US CPI release. The question remains: Are they forming reversal patterns, or are they on the brink of a breakout?