Markets were now awaiting key U.S. consumer price index (CPI) data for December, which is due later in the day. Headline CPI inflation is expected to have increased slightly, while core CPI is expected to fall further.
Inflation is expected to remain well above the Fed’s 2% annual target which, coupled with recent signs of resilience in the labor market, bode poorly for expectations of early interest rate cuts.
Lee Tran
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