There was plenty of anticipation going into yesterday's US CPI data release yesterday and markets were hoping that it would provide some form of trigger for a trending move. However, that wasn't the case as traders struggled to digest the readings and the details that accompanied the report. Here's a look at how the S&P 500 performed after having opened lower:
Eventually, the index closed more or less flat amid a slight dip at the end. And since then, US futures have been trending lower with S&P 500 futures now down 19 points, or 0.5%, on the day. That is keeping the dollar in a more solid spot, with USD/JPY even breaching back above 133.00 in overnight trading.
So, what exactly are traders inferring from the US CPI data yesterday? In the big picture, I would say not much, to be honest. Here's my personal thoughts from yesterday following the data release:
