-With CPI numbers numbers tomorrow, the market is expecting 0.3% positive change.
-CPI is the Consumer Price Index which measures the changes in the price of goods and services. It is a key way of measuring purchase trends and inflation.
- A higher than expected reading is typically taken as bullish for the USD white a lower than expected is bearish.
-Given the current Technical setup on the DXY, the market is expecting a lower than expected CPI which would be bearish for the dollar but bullish for equities and commodities/ especially precious metals. A bearish Head and Shoulders has formed and levels currently floating above the neckline; we have the MacD crossing over bearish and until that gets repaired, the DXY will most likely go lower. A measured move from this technical breakdown reflects a breakdown from 90 will provide a short opportunity to 87.
-Daniel Betancourt, OptionsSwing Analyst
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