TD Securities’ Global Strategy Team highlights that United States (US) Consumer Price Index (CPI) is the key event, with core inflation expected to rise 0.27% m/m and headline CPI to jump 0.90% m/m as higher Oil prices feed through. They note markets may look through any temporary weakness, while a stronger print could intensify inflation concerns and shape US Dollar (USD) expectations.
US CPI and PCE shape Dollar outlook
“On Friday, all focus continues to be on the Middle East, but