Global markets started the week on a cautious note on Monday as inventors anxiously waiting for the release of the US CPI report for January that might influence the Federal Reserve’s decision on whether to act more aggressively. Last week, Federal Reserve Chairman Jerome Powell today reiterated his belief that further increases in the federal funds rate will be necessary to bring inflation down to the agency’s 2% target.
The inflation data is set to be released on Tuesday at 13:30 GMT. The market participants forecast a 6.2% inflation - that would be 0.3% lower than in December. However, If the data come out higher than the expectation, the king dollar will extend the monthly gains while the precious metals and stock markets will fall because high inflation could force the FED to continue the interest rate hike in coming meetings, lending more support to the US dollar.
On the earnings front, the companies scheduled to release their last quarter financial results this week will be Cisco, Coca-Cola, Shopify, DoorDash, Airbnb and Palantir.
A crucial week ahead for Gold, EURUSD, Dollar and Dow Jones. The detailed analysis is here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-67