This week is packed with news, but the main focus is the U.S. CPI report dropping tomorrow.
🗓 Key Event: U.S. CPI Report
📍 July 15, 2025 | 12:30 p.m. UTC
The CPI report measures inflation and heavily influences the Fed’s rate decisions. Last month’s CPI came in at 2.4% vs. 2.5% expected, following 2.3% vs. 2.4% in April. While it seems inflation is rising, the bigger picture shows stable annual inflation in the 2.3%–3.0% range, keeping things under control—likely the reason Trump is pressuring Powell to cut rates.
Market expects June CPI to be 2.7%.
🤔 Possible Scenarios:
1️⃣ CPI > 2.7%: Bullish for DXY 📈. The stronger the print, the bigger the spike, but I see this scenario as less probable.
2️⃣ CPI < 2.7%: Bearish for DXY 📉. We may see a USD dump, though likely shallow since CPI could still be higher than previous months.
✨ What About Gold?
I don’t expect a major reaction in gold:
✅ Higher CPI? Gold often benefits as an inflation hedge.
✅ Lower CPI? Also supportive for gold as it weighs on the USD.
🔍 Technical Outlook:
Gold has been trading within a triangle since April 22, forming lower highs and higher lows. We may currently be in Wave D (Elliott Wave), aiming toward the triangle’s upper boundary slightly above $3,400 resistance. After that, Wave E may develop – but that’s a story for another post.
🗓 Key Event: U.S. CPI Report
📍 July 15, 2025 | 12:30 p.m. UTC
The CPI report measures inflation and heavily influences the Fed’s rate decisions. Last month’s CPI came in at 2.4% vs. 2.5% expected, following 2.3% vs. 2.4% in April. While it seems inflation is rising, the bigger picture shows stable annual inflation in the 2.3%–3.0% range, keeping things under control—likely the reason Trump is pressuring Powell to cut rates.
Market expects June CPI to be 2.7%.
🤔 Possible Scenarios:
1️⃣ CPI > 2.7%: Bullish for DXY 📈. The stronger the print, the bigger the spike, but I see this scenario as less probable.
2️⃣ CPI < 2.7%: Bearish for DXY 📉. We may see a USD dump, though likely shallow since CPI could still be higher than previous months.
✨ What About Gold?
I don’t expect a major reaction in gold:
✅ Higher CPI? Gold often benefits as an inflation hedge.
✅ Lower CPI? Also supportive for gold as it weighs on the USD.
🔍 Technical Outlook:
Gold has been trading within a triangle since April 22, forming lower highs and higher lows. We may currently be in Wave D (Elliott Wave), aiming toward the triangle’s upper boundary slightly above $3,400 resistance. After that, Wave E may develop – but that’s a story for another post.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.