5 Warning Signs of a Risk-Off Shift as Markets Await August CPI Release

USD/JPY News

5 Warning Signs of a Risk-Off Shift as Markets Await August CPI Release
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, it’s still notably high. It’s clear that yesterday’s reading places the one-day volatility measure at the upper end of its typical rangefollowing the CPI report, regardless of the data, could be higher, with the VIX moving lower as the event risk passes.

If these swap estimates are correct, the monthly figure could come in below analysts’ expectations for 0.2% m/m, while the current forecast for the headline year-over-year rate stands at 2.5%. Meanwhile, oil is sitting on the edge of the abyss, with significant support in this $65 area being threatened. A break of support in oil sets up a return into the upper $50s.

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