US Inflation Figures, EURUSD Outlook, and Key JPY Trades with John Kicklighter and Pete Mulmat

On the first Wednesday of every month, DailyFX’s Global Head of Content, John Kicklighter, and CEO of IG U.S. Pete Mulmat meet at 9:30a EST to discuss some of John’s top trades for the weeks ahead, while touching on some of their favorite trading strategies. To register for this webinar and hear their full conversations, visit our webinars page, or click the below link to be signed up for the next session.

13:30 GMT: US Inflation Figures

CPI numbers will be released tomorrow, 10 February 2022. Expectations for interest rate hikes in the U.S. are high. Markets are currently pricing in 6 rate hikes through the year, with consensus expectations for inflation at 5.9%, a 4 decade high.

John said it will be important to watch these releases tomorrow, and watch how the U.S. Federal Reserve may change their currently hawkish language, relative to the number released.

Pete quickly pointed out that no single data point is going to “rattle the cage”. It’s important not to place trades predicated on a select set of number releases.

To see other important releases and events, visit DailyFX’s Economic Calendar.

John’s view for EURUSD:

John is finding some peace of mind in a EURUSD trade to the downside. It’s a largely technical trade, with a clear technical setup, but it’s still fundamentally sound. As the U.S. Federal Reserve remains extremely hawkish, with more aggressive targets than the ECB, EURUSD is primed for a reversal.

To learn more about this trade, visit John’s article and video on EURUSD and the US Equities outlook.

JPY Key Trades:

John likes the USDJPY to the short side. While interest rate expectations won’t change much, if risk aversion changes, traders may favor a carry-trade and go short on USDJPY.

Pete and John also touched on recent moves in EURJPY. ECB interest rate expectations were fairly abrupt, which sent EURJPY into a brief rally.

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