Oil Surge Keeps Inflation Risks Alive Ahead of US Rate Decision

Markets are holding their breath as they await crucial US inflation data. The Producer Price Index (PPI) is due out today, followed by the Consumer Price Index (CPI) tomorrow. These numbers will provide the Federal Reserve with valuable information ahead of next week's rate decision.

The Fed will be keeping a close eye on oil prices, which have surged more than 40% from their July lows. Higher energy costs could make inflation a bigger problem again in September, even if last month's data comes in softer.

As a result, stocks are consolidating, while yields remain elevated globally and metals are stuck in a range. The technical analysis of the US dollar is also pointing to a potential low, but this could be an ending diagonal, indicating that stabilization is near.