The Prayed ended up closing the second consecutive week in positive territory. US September inflation data could trigger a major market reaction and help the precious metal determine its next direction, reports FXStreet’s Eren Sengezer.
Attention turns to the CPI
“The Consumer Price Index (CPI) is forecast to rise to 8.5% y/y in September from 8.3% in August. Investors are likely to put more weight on the base data, and anything above 6.5% could fuel a further rise in yields.On the other hand, an unexpected drop in core inflation should help XAU/USD gain momentum.However, the initial market reaction could fade unless it significantly influences pricing of the Fed’s next action.”
“The US Census Bureau will release September Retail Sales data. Ahead of the weekend, market participants will closely monitor the University of Michigan Consumer Sentiment Survey for October, especially the component 5-year Consumer Inflation Expectations, which fell to 2.7% in September from 2.9% in August. A further decline in this figure could trigger selling pressure on the dollar and vice versa.”
Source: Fx Street
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