➡️ Key US Consumer Price Index data was released yesterday which unexpectedly showed lower inflation due to no month-on-month inflation. Annualized CPI fell from 3.4% to 3.3%. Two of the major US stock indexes, the NASDAQ 100 and the S&P 500 , closed yesterday at new record prices all-time after rising sharply following the news, despite a more cautious approach from the Fed during its policy meeting yesterday.
➡️ Yesterday's US Federal Reserve policy meeting took place just hours ahead of US consumer price index data, which sent stocks higher and the US dollar lower on stronger rate cut expectations , which somewhat dampened more accommodative expectations, with the Fed signaling only a probable rate cut. this year. Fed Chair Powell stated that inflation has subsided substantially but is still too high and that the Fed does not yet have enough confidence about inflation to make a rate cut, so the rate was left at 5.50%. This went some way to supporting the US dollar, but left most major US stock indexes higher. According to CME's FedWatch tool, approximately 62% expects the first interest rate cut to occur in September.
➡️ Yesterday the houror rebounded from strong medium-term support around $2,285.
➡️ In the Forex market, the strongest major currency since the Tokyo open is the US dollar, while the Japanese yen has been the weakest major currency, focusing on the USD/JPY currency pair .
➡️ The Indonesian rupiah is still trading near a 4-year low against the dollar, but a rate hike seems unlikely as President Widodo seems relaxed about the rupiah's weakness. Bank Indonesia said earlier this week that it expects no change USD/INR exceeds 16,300.
➡️ Australian unemployment data released today was almost exactly as expected.
➡️ US PPI data will be released today, which is an indicator of inflation. A sharp decline is expected on a monthly basis, from an increase of 0.5% to an increase of 0.1%.
Credit by DailyForex.com
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