It’s another big day across financial markets. After months of volatility, which has seen stock markets drive lower and the US dollar reach multi-decade highs on a trade-weighted basis, the latest update on US inflation may ensure such conditions remain intact.
Today’s US consumer price index is forecast to hit 8.8% on an annualised basis. However, many are expecting an upside surprise, with even the White House weighing in, and expressing concern over a very high reading. Markets are forward-thinking, however, and will have no doubt priced this in, to a certain degree.
The EURUSD pair avoided breaking below parity yesterday in a tough battle between the buyers and sellers. The price got to within almost 1 pip of breaking the level but managed to hold on. Depending on the outcome of today’s US data, the 1.0 level may come back into play. Stay tuned…!
Written by Viv Savani. 6:24am, July 13th 2022
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