Gold, stocks and the US Dollar are set to rock. Live coverage. Join FXStreet Premiumto ask analysts questions live, leverage actionable analysis and get Gold and signal alerts. CPI inflation comes as investors fear a downturn Headline inflation will likely fall to the lowest since 2021 – energy and food price rises have fallen. What matters for markets is the core Consumer Price Index which excludes these volatile items.
Nevertheless, uncertainty stems from the size of the cut – a standard 25 bps move or a double dose of 50 bps, which markets desire. Lower inflation means a greater chance of a 50 bps cut, and that would boost Gold and stocks, while weighing on the US Dollar. Higher inflation would buoy the Greenback, while weighing on Gold and equities. Core CPI MoM is the key figure to watch, and the economic calendar points to an increase of 0.2% in August, a repeat of July's figure.