Core PPI prints Thursday at 8:30 am, followed by critical CPI and Michigan Consumer Sentiment Friday at 8:30 am and 10:00 am. Next Wednesday, the FOMC interest rate decision and economic projections at 2:00 pm, followed by Powell’s 2:30 pm presser, dominate the outlook. With markets debating the Fed's terminal rate, these inflation metrics will dictate the dot plot trajectory. Expect high volatility across equities and treasuries as retail sales data also hits Wednesday morning.
Traders should hedge positions ahead of Friday’s CPI to manage weekend gap risk. Prioritize liquid instruments during Wednesday’s FOMC announcement, as the updated "dot plot" may trigger sharp reversals in USD pairs and tech stocks.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.