Daily Summary: ​higher CPI data supports USD 💲

18:53 11 January 2024
  • Wall Street indices retreat after the US inflation readings for December. However, the scale of the declines was partially erased at the end of the session. US500 records a 0.40% drop and manages to stay above the 4800 point level. Meanwhile, US100 loses 0.30% to the level of 16880 points.

  • The dollar is the strongest currency today among the G10 countries. However, the increases are not as dynamic. On the other hand, among the weakest currencies, we can observe the Swiss franc and the Australian dollar.

  • EURUSD loses just 0.15% and the rate is maintained at the level of 1.0954

  • The US CPI report for December showed readings higher than analysts' expectations, but the data were lower compared to the previous month:

    • Headline CPI: currently: 3.4%. Expectations: 3.2% vs 3.1% previously
    • Core CPI y/y. Currently: 3.9%. Expectations: 3.8% vs 4% previously
  • Jobless Claims turned out to be very low again. Data for the last week showed a decrease in claims to 202 thousand, against expectations of 210 thousand. And previously: 202 thousand.

  • Mester indicates that the chances of achieving the inflation target this year are zero and does not see chances for a rate cut in March. A slowdown in QT is not certain, but the Fed will start discussions on this topic this year.

  • Oil quotes gain close to 1.0% today, and the increases can be associated with growing unrest in the Middle East. The United States and the United Kingdom have signaled that they will take further steps if the attacks continue.

  • Natural gas storage report showed a 140 bcf decline, pushing gas prices back above $3.0/MMBTU.

  • The cryptocurrency market is experiencing historic moments after yesterday's acceptance of ETFs by the Securities and Exchange Commission (SEC). ETFs are already listed on the stock exchange, and the first hours of trading exceed 2 billion dollars, thus confirming the high market interest.

  • The cryptocurrency market is volatile today, for a moment we observed a test of 49000 USD, after which BTC fell to around 45500 USD. Currently, Bitcoin is listed at a 0.20% loss around 46500 USD.

  • Circle Internet Financial, the issuer of the USDC stablecoin, has filed for an initial public offering (IPO) in the United States. USDC is the second-largest stablecoin in the world by market capitalization, valued at about 25 billion dollars.

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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