EURUSD Joins the Majors With Pre-CPI Build Up
Top event risk for the week is tomorrow in the US CPI release. No guarantee that it can unseat the market's inertia, but inflation taps into one of the few themes that seems to strike a nerve with global investors: the beginning of the end of stimulus.
There are a lot of very interesting markets exposed to this event risk like the S&P 500, US 10-Year Yield and Gold. However, I'm focusing more specifically on the Dollar based majors.
Pairs like USDCAD and GBPUSD are appealing technically, but EURUSD may be the most fundamental loaded for short-term volatility potential thanks to the addition of the ECB. If the ECB presents itself as 'extremely dovish', it can contrast a high US inflation figure for a EURUSD bearish view - or vice versa.
There are a lot of very interesting markets exposed to this event risk like the S&P 500, US 10-Year Yield and Gold. However, I'm focusing more specifically on the Dollar based majors.
Pairs like USDCAD and GBPUSD are appealing technically, but EURUSD may be the most fundamental loaded for short-term volatility potential thanks to the addition of the ECB. If the ECB presents itself as 'extremely dovish', it can contrast a high US inflation figure for a EURUSD bearish view - or vice versa.