Markets consolidating ahead of key US CPI data
The Dollar has opened on a marginally firmer note this morning ahead of Wednesday’s key US inflation number. Data is expected to show inflation cooling further and reinforcing a September rate cut by the Fed. The worry is for a bigger moderation than expected in inflation would stoke the recession fears and result in a bigger sell-off in equity markets and riskier assets. The Dollar is currently trading at 1.0920 against the Euro, 1.2767 against the Pound, and 147.18 against the Yen. The Rand is currently trading flat at R18.30 as it remains stuck in a R18.20/R18.40 range for now. Besides Wednesday’s CPI number, we also have US retail sales to look forward to, while several US Fed officials will also be talking this week.
Gold holding on to last week’s gains
Gold is trading largely unchanged at $2,432 this morning as it consolidates last week’s rebound from below the $2,400 mark. The yellow metal is being supported by the rate cut expectations and the volatile geopolitical tensions in the Middle East. Platinum and Palladium have both strated the new week on a firmer footing while Brent crude is trading flat at $79.80. Demand concerns continue to outweigh the fears of an escalation in hostilities between Israel and Iran.
