Markets await the release of US PPI data as an indicator of US inflation, which ticked up last week from 3.1% to 3.2%.
- There will be a release later today of US PPI (purchasing power index) data, which is typically taken as a clue regarding inflation. Headline PPI is expected to have grown by 0.3% month-on-month. If the figure is higher, that will likely be bullish for the US Dollar and bearish for US stock markets; vice versa if lower. Treasury Secretary Janet Yellen yesterday warned the decline in inflation may not be smooth.
- Bitcoin advanced again yesterday to make a new all-time high at $73,679, boosted by strong net inflows to ETFs. The short-term price action looks bullish. Trend traders will be interested here on the long side.
- In the Forex market, the New Zealand Dollar has been the strongest major currency since the Tokyo open today. The Japanese Yen has been the weakest.
- In the commodities market, Cocoa futures rose very strongly yesterday to reach new multi-year highs. Trend traders will be keen to be involved in this very long-running trend on the long side.
- UK GDP data released yesterday showed a month-on-month increase of 0.2%, as expected.
- Analysts in Japan are expecting sizable corporate wage rises will be agreed this week, which will likely trigger an abandonment by the Bank of Japan of its current ultra-loose monetary policy as soon as next week.
- There will be releases of US Retail Sales and Unemployment Claims data today at 12:30pm London time.
