A customer pushes her shopping cart through the aisles at a Walmart store in the Porter Ranch section of Los Angeles. Kevork Djansezian | Reuters Tuesday’s report of the consumer price index could set the tone for markets ahead of next week’s Federal Reserve meeting, particularly if it is hotter-than-expected. The CPI is expected to
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EUR/USD consolidates losses around monthly low, eases of late. ECB policymakers reject reflation fears, US inflation for August tames tapering tantrum. Market sentiment dwindles amid mixed clues, confusion over Fed’s next moves. Eurozone IP, ECB members’ comments and second-tier US data will provide intermediate moves, risk catalysts are the key. EUR/USD struggles to keep the
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What will drive the market in the fourth quarter Bank of America Global Research discusses the USD drivers in 4Q. “China has been an important driver of the US dollar in recent months but we expect a transition to more US-specific drivers in 4Q, reasserting its positive correlation with US yields. Much depends upon the
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Data released on Tuesday showed the Consumer Price Index rose 0.3% in August, below the 0.4% expected. According to analysts at Wells Fargo, a softer increase in the August CPI lends credence to the Federal Reserve’s view that the flurry of inflation experienced earlier this year will prove “transitory.”  Key Quotes:  “Consumer price inflation cooled
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Overall market sentiment is mildly positive with the strong rebound in DOW overnight, followed by slight gain in Nikkei. European majors are having a small edge over the others but Swiss Franc is still clearly lagging behind. Australia Dollar is leading commodity currencies lower for now, after some cautious comments from RBA Governor. Dollar is
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Gold prices edged lower on Tuesday as a stronger dollar crimped bullion’s appeal ahead of US inflation data that could offer cues on the possible timeline for the Federal Reserve‘s tapering. FUNDAMENTALSSpot gold fell 0.2% to $1,790.74 per ounce by 0138 GMT. US gold futures eased 0.1% to $1,792.10. The dollar index was steady after
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