Australia and Federal Bank forecasts US CPI: Core inflation may be higher than market consensus expectations.

The market generally expects that the CPI data will strengthen the market's expectation that the Federal Reserve will keep interest rates unchanged in the short term. Traders have ruled out the possibility of a rate cut this year; before the outbreak of the Iran war, two rate cuts were expected. Sarah Hammoud, a forex strategist at the Commonwealth Bank of Australia, said, "The risk is that, due to the spillover effects of energy prices on other prices such as airfares and food, US core inflation may be higher than market consensus expectations. If US core inflation is higher than expected, it will push up US bond yields and the US dollar exchange rate."