It's another "CPI Week" in which all is quiet on the financial markets front until Tuesday and Wednesday mornings when the PPI and CPI numbers for last month are released. Most Fed observers are writing off a move in interest rates in either direction anytime soon, yet the chance of a surprise number, especially CPI on Wednesday, hangs over the financial markets, including stocks, bonds, interest rates and to a lessor extent, gold, silver and bitcoin. I'm not one to force a trade without a tailwind, so at least until Wednesday, don't see any new opportunities worth the risk, but that doesn't keep me from looking, in particular for a special situation option trade to replace some of the Jun expirations coming up. For now, let's get past any surprises on these two inflation reports, then reassess, so for now, take a breath. Key Events This Week: All Eyes On CPI As Fed Speakers Galore "After a very slow week, the key event for markets this week will be US inflation data with April’s PPI (Tuesday) and CPI (Wednesday) the highlights. We’ll see if the higher-than-expected US inflation seen in Q1 extends into Q2 or not. Markets will also hear from Powell (tomorrow) and Vice Chair Jefferson (today) as the highlights of a busy Fedspeak calendar that are included in the day-by-day list at the end. The next most important US data release is Retail Sales on Wednesday."
