What else is coming up
The highlight of the day is the US CPI report at the bottom of the hour. It’s forecast at +3.6% y/y on the headline and +2.3% ex good and energy. I think that the broader market is well prepared for a ‘temporary’ jump so I suspect the better trade will be to fade any panic, at least if it’s only a 0.1-0.3 pp upside surprise.
Interestingly, Fed vice chair Clarida speaks at 1300 GMT, just 30 minutes after the release. He could weigh in on inflation if necessary. We will also hear from the Fed’s Rosengren 5 minutes afterwards but he’s set to talk on crypto currency.
Later we hear from the Fed’s Bostic and Harker but both of them spoke yesterday so I can’t imagine anything new.