Hey everyone, it's that time of the week again – the lead-up to the US CPI data release. As we gear up for the unveiling of these crucial figures, I wanted to share some insights and predictions with you.

First off, mark your calendars because the CPI data is set to drop around 12:30 a.m. in Australia tomorrow, which translates to a pivotal Wednesday for us. Now, let's dive into what this release might entail.

Before we delve deeper, I want to extend a warm invitation to join me tonight for an in-depth discussion on macro trends and trading strategies. Every Tuesday, from 6 to 7 p.m., we gather to dissect market movements and explore new opportunities. Head over to our website to register and secure your spot.

Register for free here.

Now, let's talk CPI. Rumors are swirling about the potential for the CPI to come in stronger than expected. If this holds true, we can anticipate a bolstering of the US dollar. However, the real question looms: how will the Fed respond?

If we witness a hike in CPI, the Fed might adopt a cautious stance, emphasising the need for gradual inflation reduction. Remember, their goal is a steady decline in inflation rates, ideally hovering around the 2% mark.

But what if we experience a sharp uptick akin to the November surge? In that scenario, the Fed may view it as a deviation from the desired trajectory. They could opt to delay rate cuts, perhaps until June, as they monitor the situation closely.

As I mull over the numbers and inflation trends, I'm keen to hear your thoughts. Do you believe the US is on track to curb inflation in 2024, or do you foresee more turbulence on the horizon?

Personally, I anticipate a modest decrease in inflation figures, aligning with market expectations. This, in turn, could bolster the US dollar and set the stage for potential Fed actions down the line.

Before I sign off, a friendly reminder to subscribe to our channel, smash that thumbs-up button, and share this content with your network. Your support means the world to us.

Catch up with the latest news and market analysis here.