US CPI Data to be Released Today: Markets Focus on Fed Policy

DXY last closed at 99.05, just above its 20- and 50-day moving averages, with RSI at 55.5 in neutral territory and slightly below the MACD signal line. Today's US CPI data will shape Fed policy expectations, so near-term directional uncertainty is high. An above-consensus reading could strengthen the dollar and push DXY higher; a below-consensus reading could create selling pressure. Technical indicators have not yet given a clear breakout signal, so the 1-3 day outlook is neutral. Volatility may increase depending on the news flow, and caution is warranted.

The SPX closed at 7592, down 1.58% in the last 24 hours, with its RSI at 29.8, approaching oversold territory. The MACD is negative and below its signal line, indicating weak short-term momentum. Today's US CPI data, to be released, could create high volatility as it shapes expectations for Fed policy. A below-expectation reading could trigger an oversold bounce upward, while an above-expectation reading could exert downward pressure. Therefore, it is difficult to provide a clear direction; a cautious and neutral stance before the news is appropriate.