Inflation

EURUSD, Nasdaq Forecast: Eurozone inflation data is in focus as EURUSD hovers near two-year lows. Meanwhile, irregular market volatility surrounding Thanksgiving, Christmas, and New Year is poised to dominate headlines, alongside key US economic data and Federal Reserve rate expectations in early December.

The Fed is seen as nearly 50/50 to cut interest rates again in December after Donald Trump and the Republicans secured a “Red Wave” last week - see what to expect from US CPI!

The Fed has shifted its focus to employment data, but after a stellar jobs report, could CPI pick up again?

AUD/USD has broken to the highest level since early January, driven by a surprisingly strong monthly inflation report. However, the underlying detail suggests we may see a big deceleration in the annual rate next month, raising questions as to whether the move will stick with so many major risk events approaching on the horizon.

Traders may view any near-term GBP/USD dips toward the 50-day EMA near 1.2800 as buying opportunities.

GBP/USD could pull back off 1-year highs at 1.3000 given the 17-year high in speculative long positioning, per the CFTC’s COT report.

US data steps away from the limelight to make way for inflation reports from the UK, Canada, New Zealand, and Japan. And throw in an ECB meeting, Australian employment report and the CCP's Third Plenum for good measure.

Traders and economists expect the US CPI report to fall to 3.1% y/y on a headline basis, with the “Core” (ex-food and -energy) reading expected to hold steady at 3.4% y/y.

Traders and economists expect the US CPI report to fall to 3.1% y/y on a headline basis, with the “Core” (ex-food and -energy) reading expected to hold steady at 3.4% y/y.

Inflation reports are the main theme for next week, with figures set to be released from the US, Canada, Australia and Japan. EUR/USD traders might want to be on guard for headline risk surrounding French elections, as it is the last full week before votes are cast and that means polls could easily sway sentient for European markets.

GBP/USD has rallied 3.5% since April's low despite favourable yield differentials with the US. Yet price action on the daily and H4 charts suggests a minor pullback may be due.