At 8:30 the CPI comes out. Analysts are looking for a 0.5% increase.
With everyone obsessed with inflation right now, the number needs no added hype.
It will be interesting to watch the dollar after the number, especially if it comes in hot. Across the eurozone and in the UK, hot inflation numbers have resulted in a jump in the currency, since it’s presumed that central banks in those areas will be forced to commit to rate hikes.
There’s no doubt that there’s been a shift in thinking lately towards the notion that after QE2 ends, the Fed won’t do any more easing.
The CPI could really bury QE3 notions for good.