All eyes on the US inflation! | MarketTalk | Swissquote

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Market bulls have endless optimism this year, it is amazing. Whether it is funded or not, is yet to be seen.
Inflation could help answer that question today.
A few indicators point at a certain uptick in inflation in January figures, and the expectation is that the US headline CPI may have slowed to 6.2% in January, from 6.5% printed a month earlier, on a yearly basis.
A sufficiently soft, or ideally a softer-than-expected CPI read today should give an additional boost to the equity bulls while a stronger inflation read could easily bring the Fed hawks back to the marketplace and send equities tumbling.
In the FX, the US dollar has seen a crowd of sellers above the 50-DMA. A strong inflation data could finally send the dollar index sustainably above its 50-DMA, while a soft reading will be a good reason to sell the rebound.
The EURUSD continues its own struggle around the 50-DMA.
In Japan, Kazuo Ueda has been nominated as the next Bank of Japan (BoJ) governor. There are rumours that the new BoJ leader could scrap the YCC policy. The yen was better bid in Tokyo, but the US CPI data is probably what will determine the short-term direction both in EURUSD and the USDJPY.
What everyone wants to see is a soft US CPI figure, a softer US dollar, strong equities, improved bonds, and stronger other currencies.
What everyone fears however is a figure that’s not convincingly softer.
The only sure thing is, the CPI days are known for their high intraday volatility.
Listen to find out more!