It was yet another day with rather underwhelming outcomes across asset classes. A slight incline on the volatility index was counteracted by the inability of price to close above Monday’s high. This situation leaves the likelihood of a continuation to the downside, with a resultant rise in equities going into tomorrow’s session.
Some of the key closes for the day include;
$DXY +0.25%
$VIX +1.58%
$SPX -0.39%
$NDAQ -0.56%
$DOW -0.09%
$WTI +0.75%
$BRENT +0.86%
The main event to watch this week is the CPI release coming out in the US session on Wednesday.
CPI m/m, y/y and core m/m have previous readings of 0.1%, 5.0% and 0.4% respectively. Their forecasts are for 0.4%, 5.0% and 0.3%, in that order.
Analysts are forecasting a 0.1% drop in the core CPI, which would be a good reading for inflation and the expectation would be for a less hawkish Fed going forward.
