The markets have been on their toes ever since the Federal Reserve decided to keep the interest rates unchanged for September 2019. In light of this decision, investors across the board have been trying to find potential trading setups for October. One of the biggest issues they have been focusing on lately is the Consumer Price Index (CPI) report that is to be released in the coming month. Tracking the inflation rate of the US economy, the CPI report offers investors an insight into the current and future market environment.
The importance of the CPI report cannot be overstated as it provides investors with a deeper understanding of the economic growth of the US. Traders use the report to identify potential trends that can be further used to make trading decisions. To anticipate the figures, investors closely watch the leading indicators such as jobless claims and import/export levels. Therefore, changes in the CPI report offerings may provide traders with timely insight into the larger financial market trend.
Under normal conditions, the markets tend to remain relatively steady and the equity indexes are usually more or less unaffected by CPI announcements. On the other hand, if the report deviates significantly from the market’s expectations, the markets may experience a drastic rise or fall, resulting in huge trading opportunities for savvy investors.
It is essential for investors to be aware of prevailing trading setups when the markets are waiting for the CPI report. Keep an eye on the technical and fundamental trading outlook when predicting the outcome of the CPI report. Analyzing the past CPI figures as well as the current ones can also help in gauging what numbers can be expected this time. Trend followers need to beware that any breakouts in the US equities and certified inflation figures need to be combined for successful trading.
In conclusion, predicting the CPI report and navigating the markets with the right trading setup will ensure that investors will be well positioned for any significant moves in the US equities. By keeping an eye on the various factors influencing the CPI numbers, savvy investors can make well-informed decisions. As the markets wait with bated breath for the October CPI report, investors should stay vigilant and utilize the available trading setups to their advantage.