Today, the US Inflation release at 15:30 GMT+3 will determine the further destiny of the major pairs and gold. The event is highly impactful, as the Federal Reserve will make decisions regarding further rate hikes based on it. Also, we brought you some news about XAUUSD and GBPUSD. Stay tuned!
American consumer prices gain in July
In July, American consumer prices went up and the underlying trend kept strengthening, pointing to a confident rally in inflation pressures, which keeps the major US bank on track to gradually lift interest rates.
On Friday, the Labor Department told that its Consumer Price Index managed to gain 0.2% and the bulk of which occurred because of a soar in the cost of shelter, powered by higher rents. As for the CPI, in June, it leapt by 0.1%.
The CPI tacked on by 2.9% for the 12 months through July. It actually matched June’s jump.
Without the volatile energy and food, the CPI jumped by 0.2%, thus demonstrating the same ascend as in June and May. The leap in the core CPI accounted for 2.4%, which is the largest soar since September 2008, adding from June’s outcome of 2.3%.
Market experts surveyed by Reuters had foreseen both the CPI and core CPI adding 0.2% in July.
American Treasury profits held near three-week minimums and American shares dived on anxiety as for Turkey’s financial woes as well as its worsening clash with America. The evergreen buck managed to ascend versus a pack of its crucial rivals.
The Federal Reserve has had rates lifted twice in 2018, in March and also in June. Besides this, financial markets are eagerly looking forward for another rate lift at the next policy gathering in September.
The main American bank currently foresees up to four rate lifts this year.
Inflation pressures keep building against the backdrop of low unemployment as well as soaring difficulty posted by US employers in filling job positions. Ascending raw material costs are also anticipated to back inflation in the United States because manufacturers pay more due to duties slapped by the current US presidential administration on aluminum, steel, and lumber imports.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
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Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.