Forex and other markets news
Inflation Has Shown Weakness
Inflation Has Shown Weakness
Inflation Has Shown Weakness.
The U.S. annual inflation rate slowed to 7.7% in October, the lowest since January. Compared to the previous month, the consumer price index increased by 0.4%, the same as in September. Housing prices rose the most, which provided more than half of the monthly increase in all items, as well as gasoline and food prices increased. Nevertheless, the data still point to strong inflationary pressures and broad price increases in all sectors of the economy, mainly in the services sector.
The U.S. dollar index dropped after the CPI news, which led to a sharp jump in the main currency pairs with the greenback. Thus, EURUSD rose to 1.01580, GBPUSD to 1.16536, and USDJPY fell to 143.260. Meanwhile, gold bulls lifted the price to 1.750 USD. Investors expect that at the Fed meeting in December the rate will be raised by 50 bp, but this is not a signal for easing financial policy yet. A turning point may be expected in the spring of 2023.