U.S. CPI & Prelim UoM Consumer Sentiment Data
Today U.S. has scheduled to release Infaltion Results at 1330 GMT/1900 IST and Prelim UoM Consumer Sentiment data at 1500 GMT/2030 IST. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. Here the average price of various goods and services are sampled and then compared to the previous sampling.
Prelim UoM Consumer Sentiment data is derived via a Survey of about 500 consumers which asks respondents to rate the relative level of current and future economic conditions. There are 2 versions of this data released 14 days apart – Preliminary and Revised. The Preliminary release is the earlier and thus tends to have the most impact.
Let’s see how Gold has reacted during the previous data release:
- The Gold weakens sharply ahead of U.S. CPI data and touches $1,770 mark during European Hours.
- Today pair made intraday high at $1,779 and low at $1,770 mark.
- A day chart and H1 chart with triple EMA suggest bearish trend for the time being.
- A sustained close above $1,781 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,770 will check further supports. U.S. Calendar is almost empty for the day.
Take a look and do trade wisely!