US data on the agenda, what to look for?

Ever since the 'soft' NFP number a couple of weeks ago, there has been a sense of ' soft landing optimism' in the air.

Today sees the release of PPI (which is an inflation metric) and the 'ideal' outcome would be for a below forecast number, which would add to the optimism and likely put the USD on the 'to short list' along with the JPY and CHF. (At least until tomorrow's CPI release).

*It's possible an in line with forecast month on month number of 0.2 would also keep the optimism alive.

Of course, it's rarely that simple, the market is extremely sensitive to inflation data and an above forecast number could re-introduce talk of no US rate cuts this year. And the USD would become a potential long trade.

I'll be watching the release with interest and I'm currently prepared to trade the USD in either direction according to the outcome.

Feel free to email any questions: johnelfedforexblog@gmail.com