CPI and PCE are about to be released, and market sentiment is more tense than a lottery draw

If the macro market has a "drawing moment."
Then it’s next week.
Because two data points will be announced:
CPI
PCE
These two indicators almost determine the market’s expectations for the Federal Reserve System’s future policy.
Why is this so important?
Because the Federal Reserve’s biggest concern right now is:
Has inflation really been brought under control?
Over the past year, the Fed has done a lot:
Interest rate hikes
Balance sheet reduction
Tightening liquidity
But inflation is like a stubborn roommate.
They’ve kicked it out several times, but it still occasionally comes back to stay for a few days.
If the CPI continues to be higher than expected:
The market will worry about one issue:
High interest rates might last longer.
If the data drops significantly:
The market will immediately start fantasizing—
When will the rate cuts come?
So now many traders’ strategies are:
Look at technical indicators during the day, wait for macro data at night
Just like a student playing games while waiting for report cards.
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