US Consumer Price Index (CPI) data released yesterday showed an unexpected decline from an annualized rate of 3.0% to 2.9%, giving equities a moderate boost and sending the US dollar lower, testing key lows.
➡️ US inflation data released yesterday showed annualized inflation fell from 3.0% to 2.9% last month, while it was expected to remain unchanged.. This is the lowest rate in three years and the fourth consecutive month of falling US inflation. This was a small dovish surprise and makes a 0.50% rate cut more likely at the next Fed meeting in September, although a 0.25% cut is expected in 65%. This has sent stock markets higher a bit and sent the US lower with strong price action. The US dollar index is now testing key support and looks likely to experience a significant downside breakout.
➡️ In the Forex market, the Australian dollar was the strongest major currency since the Tokyo open today, while the Swiss franc was the weakest. The EUR/USD currency pair remains in focus today after making a bullish breakout yesterday to reach a 2024 high at $ 1.1050. Trend traders will be interested in going long on this currency pair.
➡️ Stock markets continued to recover after the sharp sell-off at the beginning of last week. U.S. stock indexes closed higher and continued to rise after-hours this morning, while major Asian indexes are mostly higher.
➡️ US Consumer Price Index data is expected to remain steady at an annualized rate of 3.0%A lower or higher reading will likely cause a directional move in the US dollar and US stock markets.
➡️ They came close to an all-time high, hitting $ 2,480 yesterday before selling off and closing lower. However, the precious metal has found weak supply in the final hours.
➡️ UK consumer price index data released yesterday came in slightly below expectations, with an annualised rate of just 2.2%, while expectations were for 2.3%, which suggests a decrease in inflationary pressure.
➡️ Australian unemployment data released yesterday showed an unexpected rise from 4.1% to 4.2%.
➡️ U.S. retail sales and jobless claims data will be released later today.
➡️ Today is a national holiday in France and Italy.
Credit by DailyForex.com