Much Anticipated CPI data from the US to be Released Today

Much Anticipated CPI data from the US to be Released Today

The market will be eagerly waiting for the release of the CPI from the US for December month. The data will be disclosed by the Bureau of Labor Statistics on Thursday at 13:30 GMT. The global market will remain cautious about the US CPI inflation data, as it is expected to offer any insights about the direction of the Fed fund rate. 

Financial experts are estimating a rise of 0.2% in the indicator that reflects the changes in prices of a set of consumer goods and services. The headline inflation rate is predicted to rise slightly, but the core CPI is expected to fall further. However, it is uncertain if the data would lead the Fed to drop interest rates sooner, especially considering that inflation is likely to continue exceeding the central bank's 2% annual objective. Traders have begun to speculate on whether interest rates may be reduced as soon as March 2024.

If there is a rise in the value of the Consumer Price Index, it will have a favourable impact on the US dollar quotes. In November, the CPI rose 0.1% and was up 3.1% year on year, with core inflation remaining at 4%.

The US to Disclose Initial Jobless Claims

The US Department of Labor will be announcing the Initial Jobless Claims on Thursday at 13:30 GMT and is expected to be 204000 by the top economists. Meanwhile, when the indicator represents the number of individuals filing to receive unemployment insurance benefits. This job report from the US is relevant for the market participants who are trading in the American currency as the increase in the values of the Initial Jobless Claims will have a negative effect on the US dollar quotes. 

When the indicator was unveiled on 4th Jan 2024 at 13:30 GMT, it was found to be 202000 in place of the estimated 207000. Moreover, there was a drop from the previously announced 220000. Therefore, the US dollar quotes were positively affected by this decline in the values of the indicator.