Futures Markets React to CPI and Other Economic Reports

By NinjaTrader Team

Because market prices can be forward-looking, forecast numbers in economic reports can be crucial to how traders formulate expectations regarding price behavior. When the actual numbers differ from expectations, markets can react swiftly, as Tuesday’s Consumer Price Index (CPI) report showed. TJM Institutional Services Managing Director Jim Iuorio joined us on this week’s episode of “See the Futures” to discuss how reactions to economic reports can have ripple effects throughout multiple futures markets. 
CPI’s headline number came in hot—two-tenths of a percent higher than expected—and some believe it’s tracking in the wrong direction for the Fed to achieve their 2% inflation target. Stocks, bonds and precious metals showed an immediate reaction to the downside, while energy and Bitcoin futures remained relatively apathetic to this report. We looked at fundamental reasons for their reactions in various CME Group futures markets.

Additional topics discussed in this free livestream:

  • Bond market representing “smart money”

  • The Fed’s possible return to quantitative easing

  • “Buy the rumor, sell the fact” with Bitcoin

  • Chart analysis of E-mini S&P 500 Index, gold, British pound, crude oil, Bitcoin, and 10-year note futures

  • Comparison chart of 2-year, 10-year, and 30-year yield futures

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