DISCLOSURE OF CPI

The US CPI release is scheduled for 14:30 today. Investors sell risk assets amid market uncertainty

Major markets in Europe and futures contracts in the US are nervous ahead of the April US CPI data released today. Investors are opting to unload high-risk positions. The data is likely to confirm the Fed's monetary policy. Currently, traders are pricing in a 25% chance of a rate hike by the Federal Reserve on June 14 and this expectation is unlikely to change significantly unless the actual release deviates significantly from the expected data. The release of the CPI data is scheduled for 2:30pm. Here are the details:

CPI inflation (YoY): Forecast: 5.0% YoY. 5.0% YoY.

Core CPI inflation (YoY): Forecast: 5.5% YoY. Previously: 5.6% YoY.

CPI inflation (MoM): Forecast: 0.4% MoM. Previously: 0.1% MoM.

Core CPI inflation (MoM): Forecast: 0.4% MoM. Previously: 0.4% MoM.

If the expected inflation data turned out to be consistent with the actual release, it would be roughly in line with the PCE data based on historical correlations. This will give the Fed a lot of comfort, given that it has penciled in a 3.3% estimate for this year. Fed's Williams said he expects inflation to fall to 3.25% this year and reach the 2% inflation target by 2025. However, he also said he sees no reason to cut rates this year