Today’s session is all about the greenback and the US inflation read. Last month’s eye-watering 5.4% print was the highest on a multi-decade basis and has since only invigorated the already existing debate around the prospect of sharply rising inflation around the globe.
Today’s release is expected to come in slightly lower than last month’s at 5.3%. This is well above the Fed’s 2% target but the central bank is insistent that the current bout of rampant inflation is a transitory theme. However, the longer the readings remain at these elevated levels the more pressure is placed on the Fed to act.
The greenback is performing well heading into this piece of data. The gains have been racked up since last week’s strong employment report. With the pound languishing in the low $1.38s and the EURUSD pair hovering over the key $1.17 level, could more losses be on the way?! Stay tuned.
Written by Viv Savani. 8:42am, August 11th 2021
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.