Good Morning, Traders!
Today is Thursday the 12th of January, the day of the much anticipated US CPI print. Here are some things to look out for today.
Prior to US inflation figures, which are seen to be crucial in determining the magnitude of the Fed's next rate increase, the dollar gauge dropped to a new seven-month low.
The yen increased as news broke that the Bank of Japan would discuss the consequences of its easing at its meeting the following week.
Treasury prices remained stable or rose marginally. European stock markets rose for a second day, while US equity futures showed little movement.
The market will be assessing how far and how quickly price rise can retreat as important US inflation data is forthcoming. It is anticipated that the headline consumer price index for December will be 6.5%.
For a dedicated article with prep for US CPI, click HERE
This period has been called the "dangerous decade" with good reason. After the shocks of 2022, a global recession in 2023 seems like a sure thing.
According to a Deloitte survey, the protracted labor shortage in the US and European consumer products industry is likely over.
8:30 AM ET
US CPI for December
YoY - Median Forecast: 6.5% | Prior: 7.1% | Range: 6.8% / 6.3%
MoM - Median Forecast: -0.1% | Prior: 0.1% | Range: 0.3% / -0.3%
Core YoY - Median Forecast: 5.7% | Prior: 6.0% | Range: 6% / 5.6%
Core MoM - Median Forecast: 0.3% | Prior: 0.2% | Range: 0.6% / 0.2%
US Weekly Initial Jobless Claims - Median Forecast: 215K | Prior: 204k | Range: 231K / 190K
Weekly EIA Natural Gas Change - Median Forecast: -15 BCF | Prior: -221 BCF | Range: -6 BCF / -22 BCF
11:30 AM ET
US sells $60 bln 4-Week Bills
8:45 AM ET
Fed's Harker discusses the economic outlook at an event hosted by the main line chamber of commerce in Malvern, P.A.
Text and Q&A are expected.
11:30 AM ET
Fed's Bullard discusses the economy and monetary policy during a virtual event hosted by the Wisconsin Bankers Association.
A text release is yet to be determined, but there will be a Q&A with the audience.
12:00 PM ET
BoE's Mann delivers a lecture at alliance manchester business school, university of manchester titled ‘challenges facing the UK economy, challenges facing monetary policy: a comparative look’
Fed's Barkin speaks to an event with Virginia bankers.
Text is not expected, but a Q&A with both the audience and the media is expected.