An unprecedented madness will await the financial markets an hour from now.
As countries, global banks, and investors eagerly await the release of US inflation data…
These data will literally determine the fate of the American economy.
What is expected until now is a decline in inflation to 6%, so if the result came at 6% or less than that, this means that the Fed may stop raising interest rates.
This is considered strongly negative for the US dollar, and at that time we will witness a great brilliance in gold prices and indices, and then US banks will breathe.
But if the inflation data is higher than 6%, this means that the Fed may raise 50 points, and in this case we will witness a sharp bleeding in the indices and crude oil, and it will shine in return for the US dollar. As for gold, it will decline momentarily, then it will return later to rise as a safe haven (high inflation means raising interest In a larger way, which means more crises in the American banking sector).
Goldman Sachs expects that inflation will not decline, while JP Morgan expects it to decline, especially with the global decline in energy prices.
