The US consumer price index fell 0.1% instead of the expected 0.1% increase, slowing annual inflation to 3.0% from 3.3% last month and below the expected 3.1%. The price index excluding food and energy slowed to 3.3%, also weaker than expected.
The faster inflation slowdown prompted a reassessment of policy rate forecasts. According to the FedWatch tool, traders now see a 45% chance of three or more rate cuts by the end of the year, up from 27% a day ago and 14.5% a month ago.
This is negative news for the dollar and positive for global demand for risk assets, including equities and gold. US indices continue to hit all-time highs on a daily basis, and the sentiment index has returned to “greed” territory. The price of gold passed $2410 per ounce. The price was above this level only between the 17th and 22nd and for a few minutes on the 12th and 19th.
The FxPro Analyst Team
- Nasdaq 100 reversed from strong support level 21000.00 - Likely to rise to resistance…
- USDJPY reversed from key support level 156.35 - Likely to rise to resistance level…
The recent declines in US indices may have broken the bullish trend, indicated by technical…
The dollar has paused its strengthening, as weaker-than-expected inflation data reduces fear of future Fed…
Bitcoin finds support near the 50-day moving average, but further declines in the stock market…
- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…
This website uses cookies