Monday's Market Minute: Focus On Inflation

With last week’s manufacturing and employment data sending mixed messages, investors will be listening closely to comments from Fed chair Jerome Powell and other Fed speakers this week for insight about the FOMC’s next interest rate policy decision. We have Powell today, tomorrow and Wednesday, as well as Kashkari, Evans, George, Mester, Rosengren, and Kaplan scheduled throughout the week—and that’s just the Fed speakers, the list goes on. We also have PPI-FD, JOLTS, CPI, and Import/Export prices this week, so there’s a lot to watch.

In terms of levels in the /ES, I’ve got my eye on the low from last week around 2,855. Gold is teetering around 1,500 while the U.S. Dollar is hanging out around 99, near the high of the year. Those three products seem to be waiting for some sort of directional indication from the 10-year yield (TNX), which has been range-bound between 2.0% and 1.4% since the first week in August. Watch these products for a breakout, because when they do, the ripple effect will be widespread, and it’s possible the inflation data this week could provide the catalysts.

Information from TDA is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade.

Image Sourced from Pixabay