All eyes will be on USD/CNH this week as the world’s two largest economies are scheduled to release key inflation data.
US bond yields surged to a pandemic-era high last week, as the Fed turns increasingly hawkish. Traders are now pricing in the possibility of 4 rate hikes in 2022, and CPI and PPI prints this week may all but confirm this expectation.
On the other hand, expectation is for China’s CPI data to show a drop-in inflation for December, paving the way for officials to pump the faltering economy with more stimulus.
Will the inflation data help spark a new rally for USD/CNH?
Check out our latest analyst article for a deeper understanding and analysis of key levels: