Risk-off: US futures fall as CPI looms, Bitcoin and silver rally

Global markets displayed mixed risk sentiment Monday, with US equity futures declining while alternative assets like Bitcoin and silver posted gains ahead of crucial CPI data. The divergence suggests investors are hedging inflation risks while reducing equity exposure before key economic releases. European indices also slid, reflecting broader risk-aversion as traders position for potential volatility. The upcoming US inflation report carries significant weight for Federal Reserve policy expectations and could trigger substantial moves across forex pairs. Bitcoin's rally alongside precious metals indicates growing demand for inflation hedges, potentially signaling market concerns about persistent price pressures. For forex traders, this environment favors safe-haven currencies like JPY and CHF, while commodity currencies may find support from precious metal strength. Pre-CPI positioning suggests heightened volatility ahead, with market direction hinging on whether inflation data meets, beats, or misses consensus expectations.