The United States will publish the ISM Manufacturing PMI on September 1, at 17:00 MT time (GMT+3).
Evergreen buck extends losses versus euro
On Tuesday, the evergreen buck pared profits versus the Japanese yen and also extended losses versus the common currency after American consumer prices revealed that inflation is still low notwithstanding a tight labor market, spurring the Fed’s case for keeping interest rates intact.
In February, the Consumer Price Index managed to rally for the first time for four months, although the tempo of the lift was moderate that resulted in the smallest annual gain for 2-1/2 years.
Assessing the purchasing power of the greenback versus its primary peers the USD index headed north by 0.17% hitting 97.054.
As for the common currency, it rallied by 0.27% versus the evergreen buck, last priced at $1.1275. The greenback surged against Japan’s currency hitting 111.13 yen.
The major US financial institution has explained a lack of inflationary pressure by the fact it has felt comfortable pausing its interest-rate lifting cycle. The Federal Reserve utilizes the core personal consumption expenditures price index for the purpose of tracking inflation against its 2% objective. CPI is good when it comes to assessing the state of American inflation.
On Tuesday, the Labor Department told that its Consumer Price Index jumped by 0.2%, backed by the rally in the costs of rents, gasoline, and food. The CPI had been intact for three months in a row. Without energy and food, the CPI managed to surge by 0.1%, which is the smallest leap since August last year.
The core CPI tacked on by 2.1% for the 12 months through February. For the three months in a row the core CPI had gone up by 2.2% on an annual basis. By the way, market experts had thought the CPI along with the core CPI would soar by 0.2% in February.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
What will happen? US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27…
Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.