NEW YORK (Scrap Register): Key U.S. economic data that commodities markets will be closely scrutinizing this week include the Consumer Price Index on Tuesday and retail sales on Wednesday, said Hussein Sayed, chief market strategist at FXTM.
The CPI report comes not long before next week’s meeting of the U.S. Federal Open Market Committee. Consumer prices are expected to have cooled down last month after surging 0.5% in January, but the headline CPI is still forecasted to rise 2.2% YOY [year-on-year], from 2.1%, Sayed added.
Investors are likely to give more attention to the core CPI, and if it remained steady at 1.8% year-on-year, there would be no reason to think that the Fed will take an aggressive stance when it meets.
Retail sales are expected to rebound after falling for two consecutive months. If they met the anticipated 0.3% rise, this may suggest that the tax cuts are finally encouraging consumers to save less and spend more.