Today at 4:30 pm Dubai time the markets are awaiting the US inflation data, and the markets are awaiting what the real reading will be compared to what is expected and compared to the previous reading. Expectations indicate that inflation on an annual basis has stabilized at the same previous levels at 3.1%.
If the reading is higher than expectations (3.1%), this indicates that inflation is still high and higher than the Federal Reserve’s target of 2%. This may encourage the Fed to maintain interest rates for a longer period, and analyst expects that this may be positive for the dollar and negative for gold and stocks.
If the reading is lower than expected, this may increase investors’ optimism that the Federal Reserve may reduce interest rates soon, so this may negatively affect the dollar and positively affect gold and stocks.
