Investors Should Keep Eyes on Inflation Results, Negative Sentiment after Tillerson Exit

The firing of U.S Secretary of State Rex Tillerson overshadowed the Consumer Price Index data yesterday.
Yaron Mazor
MARKETS

The unimpressive inflation data may still prove to be the more important piece of the economic puzzle. The U.S Dollar lost value in forex against the major currencies in the wake of the inflation reports.

Tillerson Firing Gives Pundits a Talking Point, Global Equities Decline Slightly

An intriguing event happened yesterday when the U.S Consumer Price Index data which had been eagerly anticipated met its rather unimpressive expectations, and then quickly was pushed to the side by media pundits upon the firing of U.S Secretary of State Rex Tillerson. Wall Street turned in a negative day and the press was quick to blame the decline on the instability of the Trump White House. However, the results on the global equity markets – including Wall Street, were well within the boundaries of a normal trading session. Asian equities have been negative this morning, but trading has certainly not been vicious. Meaning – do not pay too much attention to pundits telling you the Rex Tillerson firing is a significant factor in the broad markets.

Fed Doubters Given Ammunition Yesterday, U.S Dollar Weaker Across Board

CPI data from the States only met its forecasted gain of 0.2%, and had an instant effect in forex as the Yen, Euro and Pound all became stronger. The Euro is near 1.24 and the Pound is within sight of 1.40 versus the U.S Dollar. The rather slight gains via inflation in the U.S gives ammunition to investors who believe the Federal Reserve’s hawkish stance is too aggressive. The Fed is widely expected to raise interest rates in a couple of weeks by another quarter of a point. But its long-term outlook could be affected if inflation does not climb significantly.


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U.S Crude Oil should be Watched, Inventories Data from States Today

U.S Crude Oil could prove worthwhile to watch. The commodity is below 61.00 U.S Dollars a barrel, but Crude Oil Inventories data will be published from the States later. And the commodity has proven recently it has the ability to reverse higher after approaching short-term technical support levels.

Retail Sales Data Coming from States, European Industrial Statistics

The Core Retail Sales data from the U.S will be issued at 12:30 and could influence market sentiment.

  • 10:0 AM GMT E.U, Industrial Production
  • 12:30 PM GMT U.S, Core Retail Sales
  • 14:30 PM GMT U.S, Crude Oil Inventories

Yaron Mazor is a senior analyst at SuperTraderTV.

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