Markets on the Move: CPI Data, Trading Strategies, and Risk Appetite

The Eurozone’s latest CPI numbers are in, showing inflation steady at 2.7% year-over-year, with a slight uptick in monthly data at 0.3%. This hints at softening inflation trends, aligning with the European Central Bank's (ECB) dovish outlook. Expect rate cuts ahead, which is weakening the euro.  

Today’s Key Events: 

• UK CPI Data**: Anticipated at 2.2% YoY, with expectations for stronger monthly figures.  
• German PMI Updates: A crucial indicator for euro movement.  

Trading Strategy:  

With euro weakness and potential GBP strength if UK CPI beats expectations, a EUR/GBP short trade looks potentially promising. Leverage the divergence in central bank stances—the Bank of England remains more hawkish than the ECB.  

Market Sentiment Post-Elections:

Risk-on appetite is driving gains in high-risk assets:  

📈 Crypto: Dogecoin (+141%), Bitcoin (+35%).  

📈 Stocks: Tesla (+36%), Coinbase (+67%).  

📉 Safe Havens: Gold (-4%), Treasuries (-2%).  

The market's risk-on mode creates opportunities in volatile assets, but also signals caution for conservative plays.  

Upcoming Events:

• Lagarde Speaks Tonight: Watch for hints on ECB’s next move.  
• Friday PMI Reports: Key to shaping next week’s strategies.  

Join me tonight at our free trading webinar to dive deeper into strategies and market analysis. No credit cards—just insights. Link in bio!  

Let’s capitalise on these trends together. Happy trading!  

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