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From gold traders, to central bankers, and most certainly consumers - many are wary about the prospects of rising prices of goods and services, and its impact on the global economy.
Today (Wed, June 10), the world’s biggest economy is set to unveil its latest monthly inflation data.
First, a quick recap to get you up to speed.
Inflation is widely measured via the Consumer Price Index (CPI).
1) Inflation drives Fed rate decisions
Inflation directly influences what the Federal Reserve a.k.a. The Fed - the world’s most influential central bank - does with US interest rates.
When inflation runs hot, the Fed may raise rates, making borrowing more expensive and potentially cooling price gains in stock markets, gold, even cryptos.
2) Market volatility spikes on CPI announcements
The CPI announcements are must-watch events, and can trigger huge prices moves across asset classes - bonds, stocks, FX, commodities and cryptos.
These big moves create rare trading opportunities as markets react sharply to whether inflation comes in higher or lower than expected.
3) Inflation trends affect your own spending, and portfolios
Rising inflation affects financial markets, government policies, and even your own budgets.
Higher petrol prices translate into more money needed to fill up the tank, and perhaps in turn less spending on your daily coffee fix.
Understanding CPI helps you position not just your trades and investments, but even household spending as well.
Here’s what experts are forecasting for this top-tier economic data release:
If so, 4.2% would be notably higher than April’s 3.8% year-on-year surge - already the biggest yearly jump since 2023!
If so, 0.5% would be slower than April’s 0.6% month-on-month surge.
If so, 2.9% would be slightly higher than April’s 2.8% core y/y CPI.
If so, 0.3% would be slightly lower than April’s 0.4% core m/m CPI.
Traders and investors will want to find out if US inflation is overheating in today’s CPI release, which then forces the Fed to raise interest rates more aggressively in 2026.
At the time of writing, markets fully expect the Fed to hike rates at least ONCE by end-2026!
Pay close attention to this week’s list of “3 Assets to Watch” and how they react to the incoming CPI figures.
These % forecasts are for the 6 hours after the CPI release @ 12:30 PM UTC Wed, June 10:
Bitcoin (BTC): as much as 1.8% up / 1% down
Ethereum (ETH): as much as 3.7% up / 1.2% down
Ripple (XRP): as much as 2.3% up / 1.1% down
Solana (SOL): as much as 4.2% up / 1.5% down
Gold (XAUUSD+): as much as 1% up / 0.5% down
Silver (XAGUSD): as much as 1.5% up / 1% down
Brent Oil (UKOUSD): as much as 1.4% up / 0.6% down
WTI Crude Oil (USOUSD): as much as 1.2% up / 0.6% down
EURUSD+: as much as 0.4% up / 0.27% down
GBPUSD+: as much as 0.3% up / 0.25% down
USDJPY+: as much as 0.3% up / 0.4% down
S&P 500 (SP500): as much as 0.5% up / 0.5% down
Nasdaq 100 (NAS100): as much as 0.5% up / 0.6% down
Dow Jones Industrial Average (DJ30): as much as 0.8% up / 0.8% down
DISCLAIMER:
This article is provided for general information and reflects the author’s views only. It does not constitute investment advice, nor an offer or solicitation to buy or sell any financial instruments or digital assets. Your ability to access or use any products or services mentioned may be subject to the laws and regulatory requirements of your jurisdiction.