It will be the hottest week of September, with four central banks’ meetings, five PMI releases, and a lot to trade.
Markets ahead of the CPI Release
Good Wednesday, dear traders! Let’s look at the main news ahead of the main event that will shake the markets: the release of US CPI at 15:30 GMT+3!
- The United States will release the Inflation Rate today at 15:30 GMT+3. According to the forecasts, The headline US CPI will advance by 0.6%, while the core indicator will rise by 0.2%. Such an impressive increase may push the Fed towards more rate hikes.
- Yesterday, Apple introduced iPhone 15, and its shares fell by almost 2%. Device cameras have more megapixels and weigh 1 gram less, and it is also possible to send a satellite SOS signal in 14 countries. But the most important thing is that Apple has officially abandoned the Lightning connector and is switching its devices to USB Type-C.
- BBG CFTC says bullish bets on WTI oil from a hedge fund are the highest in 15 months. Meanwhile, BofA notes that the US Strategic Petroleum Reserve (SPR) is at a 40-year low, and oil prices are at a 10-month high. A new struggling cycle around oil prices starts. Oil price growth may push inflation higher again.
- Tesla topped the list of the most shorted large-cap US stocks. At the end of August, this happened for the third month. Meanwhile, Tesla stocks made a large gap on September 11th. The price may try to close it by returning to $256.50.
EURUSD ahead of US CPI
The pair has been moving within the descending trading channel. Today, it has been hovering between the strong support at 1.06850 and the 50-period SMA. If the release exceeds expectations today, the pair will break the support at 1.0685 and target the next support at 1.0630. Otherwise, we will see a surge toward the resistance at the upper border of the descending channel at 1.0830.
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Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.
In today's market insights, we delve into Citibank's oil price predictions, the evolving competition between Huawei and Apple, the Saudi Arabia-Tesla partnership, and the upcoming rate decisions from the world's major central banks.