Market Movers: CPI Data diminish expectations of interest rate hikes
Market Movers: CPI Data diminish expectations of interest rate hikes - The return of decreasing the data consumer price index (CPI), United States to negative territory (deflation) diminish expectations of a rate hike by the US Federal Reserve, and make the dollar weakened. Although there is a possibility, but many predict the Fed will keep interest rates <0.25% on the announcement of the monetary meeting at 01.00 pm midnight.
Whether or not interest rates rise, market participants will continue to pay attention to the background of the decision, the US economic outlook, as well as the press conference by Janet Yellen, who will influence market movements.
Before midnight, some of the data and the event will be a market mover. Governor of the Bank of Japan, is scheduled to speak at Puku; 13:35 pm. Then the Swiss National Bank will announce the Libor rate, and provide an assessment of monetary policy at 14:30 pm.
Britain today will report retail sales data for August are expected to rise 0.2% from the previous month rose 0.1%. If the release is higher than expected, sterling could potentially continue domination against the dollar after data on Wednesday rose sharply responding to the data the average salary of the UK.
From the US, today will release the data permit to build in August, weekly unemployment benefit claims, current account, housing starts, and the index of manufacturing activity Philadelphia region. Overall these data could potentially put pressure on the dollar, see the economists' expectations will rise in jobless claims and a drop in manufacturing activity Philadelphia.
Gold has the opportunity to continue strengthening if the economic data from the US make the dollar under pressure, and the Fed keep interest rates. Likewise with the oil, which will take advantage of the weakening dollar to bounce back after a rally of more than 4% on Wednesday. The arrest rate also provides the potential for the strengthening of the stock market index.
