Investors remain anxious ahead of today’s major macro events – May’s CPI report will be under very close scrutiny.

Last month’s report showed consumer prices increased by the most in nearly 12 years in April. However, more gains are expected as the market forecast a 4.7% year-on-year inflation growth in May, up from 4.2% in April. 

The core inflation is seen rising to 3.4% on the year, the highest in decades. Additionally, many economists think inflation numbers will be even higher than the official estimates. 

Still, the Fed keeps saying inflation is only transitory and won’t last long. The market does not think so. 

Today’s other major event is the latest policy decision by the European Central Bank, with investors carefully watching for any clues of an imminent slowdown to its bond-buying program, also known as tapering. 

The greenback was somewhat higher during the London session, but sentiment seems negative heading into the mentioned data.

Precious metals fell, ending their post-NFP rally, and gold was seen half a percent lower today, trading at around 1,880 USD.

Source: https://www.axiory.com/market-news/markets-nervous-ahead-of-cpi-ecb

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Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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