LIVE MARKETS-US CPI has potential to be a non-event - ING

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US CPI HAS POTENTIAL TO BE A NON-EVENT - ING

With the U.S. government shutdown causing a long drought of hard data from the world's biggest economy, all eyes are today are on US CPI data for September, as investors look for direction.

However, the data may not bring much action for the U.S. dollar as high inflation is expected but markets have already priced in 50 bps of Federal Reserve cuts by the end of the year, says Francesco Pesole, FX strategist at ING.

"Despite tariff-led price pressure in some sectors, there are indications that airfares, hospitality and housing should be a drag on the CPI basket," he says.

"With headline and core close to 3.0%, the Fed can cut and signal more easing ahead when it meets next week. But markets are fully pricing in 50bp by year-end, and without any jobs data at hand, it will be hard to speculate much beyond the December meeting," he suggests.

(Joice Alves)

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