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We Called It!
LINK (Crypto Fox): From the newsletter edition 61 - only hit entry recently - clean short given from 19.28 (the 4H candle closed back below 19.507 after first going above) to a local low at 18.059 for a current 6.33% unleveraged profit potential.
USDCAD (Crypto Fox): 56.3 PIP profit potential before getting stopped out at break-even as suggested in the TG - we caught the move from 1.34148 down to 1.33585.
Macro Markets
CPI & Inflation
In December, the US consumer price index rose 3.4% year-on-year, exceeding market forecasts of 3.2%. This was stronger than consensus expectations. The consumer price index (CPI) rose 3.4% year-on-year, above market expectations of 3.2% (November: 3.1%). In monthly terms, the CPI recorded a variation of +0.3% (+0.2% compared to the forecast).
The underlying index (i.e., excluding energy and food) increased by 3.9% (market forecast: 3.8%; November: +4%). Every month, underlying prices increased by 0.3%, in line with expectations (November +0.3% month-on-month). As a result, the 10-year Treasury yield rose above 4% again, and the dollar index rose. However, Fed funds futures continue to be discounted Between five and six rate cuts this year, Double the FOMC’s forecasts.
For January, we expect 3.4% YoY, the same as December. It will be interesting to see the breakdown and how core inflation takes in new changes in rent/shelter. We need to see downward pressure in this. Any upside move will result in the market repricing more cuts out of this year.
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