U.S. CPI & Core CPI Data
U.S. CPI, core CPI Data
U.S. is going to release CPI as well as core CPI data around 1230 GMT/0600 IST. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. If actual data comes greater then forecasted then it is good for U.S. dollar. Markets anticipate flat to negative reading from both the data. Markets expect CPI to come around 0.3 pct vs 0.6 pct previous release while core CPI to release unchanged at 0.2 pct.
Let’s see how gold has reacted during the previous data release:
Core CPI Data
July 14: Positive Data
June 10: Negative Data
XAU/USD (GOLD): Gold recovers slightly from previous losses and currently stabilizing above $1,900 mark. Today pair made intraday high at $1,949 and low at $1,862 mark. A sustained close above $2,063 requires for the upside rally. Alternatively, reversal from key resistance will take the parity down towards key supports around $1,862, $1,840, $1,822, $1,809 and $1,787 mark respectively. Key resistances are seen at $1,956, 1,972, 1,980, 1,991 and $2,002 marks respectively.
Take a look and do trade wisely!