Market overview
Markets enter Wednesday’s European session with one dominant catalyst ahead: September US Consumer Price Index data. The release is due at 16:30 Dubai time and is expected to show headline inflation accelerating to 0.6% month-on-month and 3.6% year-on-year, from 0.4% and 3.4% previously. Core CPI is forecast at 0.2% monthly and 2.5% annually, compared with 0.3% and 2.4% in August.
A hotter print would reinforce the higher-for-longer rates narrative, support the US Dollar and pressure rate-sensitive assets. A softer outcome would likely pull yields lower, weaken the Dollar and improve demand for Gold and higher-beta cryptocurrencies. Until the data lands, liquidity may remain uneven and conviction limited.
