US CPI very much on the radar for the Dow Jones this afternoon

At 1.30pm GMT the US will release the November CPI (Consumer Price Index) report and that could have a significant impact on what the markets might expect in terms of any Fed monetary policy change next week. That covers US stocks as much as it does on the dollar and bond markets. So, the Dow Jones set a fourth consecutive lower daily close last night, ending the session 154 points lower, at 44,247. That close marked a decline of more than 800 points from the record set at 45,073 reached on December 4. The November CPI data is expected to show a slight rise on the previous month. CPI is expected to rise by 0.3%, from a 0.2% increase in October. The annualised rate is forecast to rise by 2.7%, from 2.6%. The core annualised rate is is forecast to remain steady at 3.3%. Anything north of those annualised rate expectations could evoke a negative reaction in the Dow and a converse positive reaction in the dollar, especially the USD/JPY. That pair will be front and centre in terms of the US currency this afternoon. Right now the Dow Jones futures are not seemingly taking any chances with the outcome and pricing a slightly opening just now, at around 44,220