CPI Preview (Good, Bad & Ugly)
What’s in Today’s Report:
- CPI Preview (Good, Bad & Ugly)
Futures are modestly lower following more disappointing economic data from Europe and as the dollar again surged to fresh multi-decade highs.
The German ZEW Economic Sentiment Index collapsed, falling to –53.8 vs. (E) -38.0, adding to quickly rising recession worries in the EU.
The bad ZEW reading further weighed on the euro and boosted the dollar, which rose to another 20+ year high.
Today there are no notable economic reports and just one Fed speaker, Barkin at 12:30 p.m. ET. So, like Monday, we’d expect positioning ahead of tomorrow’s CPI report and any potential COVID headlines from China to move markets (and if there’s a path of least resistance today, it’s lower into the CPI print).
