Aamna Aamna 
Consumers in the United States were waiting on CPI data january 2025, specifically predicting 2.9% YoY in December, to which November only offered 2.7%. Underlying full-year CPI, you know that is excluding the volatile food and energy prices, is forecasted to be at 3.3%. The monthly average indicates that CPI, which is generally used to track headline inflation is expected to increase by 0.3% while core Inflation will increase by 0.2%. Scheduled for release on Wednesday at 13:10:30 GMT, this data from the Bureau of Labor Statistics will be followed keenly by Forex Factory and any other financial analysts.
The information released within the CPI that could assist the US Dollar (USD) as markets consider price inflation is the figure estimated for January 2025. But it won’t necessarily lead to policy shifts immediately from the Fed, which is expected not to alter key interest rates next week, at the earliest during its meeting on January 29. This is evident in the December FOMC minutes where Fed officials expressed concern about rebounding inflation threats and policy risks occasioned by proposed changes in trade and immigration policies.
According to Forex Factory’s analysts, implications may also exist for the EUR/USD pair. The levels of support are manifested at the rate of 1.0176 and with resistance levels at 1.0436. Taking a look at the December CPI, traders cannot help but wonder what the Fed is going to do next regarding its inflation fight.
