The higher prices seen today are generally related to the pandemic, that’s no doubt. US consumer prices jumped in October at the fastest pace in three decades putting the Biden administration on the defensive and increasing prospects that the Federal Reserve will raise interest rates next year. Jerome Powell says Fed will discuss speeding up bond-buying taper at the December meeting. What does it mean for markets?
CPI May Hit 10%, What to Do?
For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets. Let's talk about the consumer price index, its importance for the US economy and global markets. Also, we’ll look for trade ideas in the upcoming days.
It seems like most of the assets have joined Black Friday's sell-off with global indices, risky currencies, and commodities going down.
Jerome Powell is getting a second term as chair of the Federal Reserve. Powell is seen as less dovish than Brainard (another nominee). The US dollar should get some support from the possibility of faster-than-expected Fed tapering.
Gold is still moving like a snail; Russia faces default; first signs of upcoming earnings season, and dozen of speeches from bank’s governors and G7 members. We have a lot to look for, and in the next several minutes, you will be filled with trade ideas and market news!
The interest rate hike shakes the market. However, not all are happy with that! The market is officially bearish now and assets, such as cryptos, stocks, and indices are in shock!
Traders expect a calmer US inflation release on Friday that may allow the Federal Reserve to slow down interest rate hikes…