All Eyes On CPI Report
The Consumer Price Index is ameasure that examines the weighted average of prices of a basket of consumergoods and services, such as transportation, food and medical care. It iscalculated by taking price changes for each item in the predetermined basket ofgoods and averaging them. Changes in the CPI are used to assess price changesassociated with the cost of living; the CPI is one of the most frequently usedstatistics for identifying periods of inflation or deflation,
This is the number everyone iswaiting for; why, I have no idea. The numbers are never right, can cause someextreme market action and will be revised later. Traders are looking at thisnumber to gauge whether interest rates are going to continue to rise. The stuffthat gets stripped out of this report renders it worthless in my opinion. Mostof the information has been priced in to the markets and nothing will changethe Fed and central bank's manipulation,
Whatever the number is, itpromises to bring some excitement early. Afterwards we expect a resumption ofthe overall trend, which is lower in equities and gold. Gold has rallied thelast couple of days but not nearly what it should have, and expectations are tosee a sell-off to $1,300. Early volatility should lead to selling pressure inmetals and equities.
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