USD slides ahead of CPI data

On Tuesday. Atlanta Fed President Raphael Bostic noted that belief in the 'transitory' inflation pressures – something that has guided Fed policy for the last 12 months - may be fading at the central bank. 

Bostic said there were increasing signs that the disruptions to supply chains that have been responsible for a large part of this year's inflation will be around for longer than previously expected. 

No one can be shocked by this "sudden revelation," and it only confirms the fact that the Fed had it all wrong since the beginning, yet they continue to print record amounts of money each month.

Elsewhere, the European industrial production is expected to weaken notably in August, pushing the yearly change to 4.9% from 7.7% previously. As a result, the monthly gauge will probably turn negative, forecast to drop from 1.5% to -1.6%.

Later today, the US CPI for September will be released. The year-on-year change is expected to stay at 5.3%, while the monthly basis will likely remain at 0.3%. The core indicator should stay at 4.0% year on year. If the numbers come out with some deviations, we could see significant market movements afterward.

Additionally, the FOMC minutes from the latest Fed meeting will be released, possibly causing another round of volatility in the markets.