Today at 3:30 pm Egypt time, attention is turning to the US inflation data represented by the Consumer Price Index, as the markets are waiting for this moment, which is likely to lead to a more sustainable trend.
US retail sales will also be released at the same time, but without huge surprises, we expect that they will not be of much importance.
The annual US Consumer Price Index is expected to register 3.4% compared to 3.5% previously, and at the monthly level 0.3% compared to 0.4% previously.
Given the pricing of the markets and the general fear that inflation will continue to rise, a bearish surprise is likely to trigger a much bigger reaction than a bullish one.
Fed Chairman Jerome Powell retreated from the expectations of raising interest rates at the last press conference, stated that they will need convincing evidence that their policy is not restrictive enough, and also repeated the same message at one of the events held yesterday.
It is true that some measures of inflation expectations have risen recently, but for the most part they are limited in scope.
The main indicators show that the labor market is declining, and wage growth is slowly returning to pre-pandemic levels.
Therefore, today's inflation data will be of great importance in determining the overall direction of the US Federal Reserve over the coming period.
