Daily Alert – Tuesday 14th September 2021: Markets quiet before US inflation report

Mark NugentDaily Alert, Sept 2021

Daily Alert – Tuesday 14th September 2021: Markets quiet before US inflation report

Good morning traders.

Risk sentiment was indecisive yesterday. Equities moved up slightly, indicating risk-on, but so did bond pricing, driving the US 10-year yield lower. There was nothing of note in the economic calendar to spur any further movement or give any clarity on sentiment.

Having said all that, I did go long on WTI as it moved up and out of its recent consolidation zone. I don’t know how high it will rise. All price predictions from institutions are only marginally above where we are right now, there are no OPEC+ manoeuvrings in play and, although the news flow focuses on things like Hurricane Ida and its aftermath, the fact is that Gulf of Mexico production would have to be shut for a very long time before it had any impact on oil supply. So far, the trade is in the money.

Later today we have US CPI. The market is highly attuned to inflation at the moment, the issue being the transience or permanence of any rise in inflation. That means that the four CPI prints we have this week all have the ability to move the market and arguably today’s US report is the most important.

I’ll be back tomorrow.

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