- US and European indices at fresh record highs
- US inflation rate remains at 13-year high
- US crude stocks drop less than forecast
- Washington urges OPEC to increase oil output
On the one hand, inflation remains very high. On the other hand, investors already see the "peak" of the price pressure. The headline inflation for July remained unchanged at 5.4%, which is one of the highest levels in recent years. On the other hand, core inflation eased slightly, but still remains at a high level of 4.3% YoY. Investors, however, took this as a signal that inflation was not such a big problem anymore, although at the same time the Federal Reserve is starting to notice this problem.
Fed George joins a group of bankers like Bullard and Waller who see the need to tap the QE program quickly. According to George, the economy has made such progress that the QE program is no longer needed in its current state. Despite such hawkish words, EURUSD rebounded today, which was related to investors' perception of US inflation figures. Meanwhile, US and European indices reached new all-time highs today.
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Open account Try demo Download mobile app Download mobile appCrude oil is gaining slightly today. US inventories fell less than expected. Gasoline stockpiles fell more than analysts anticipated while distillate inventories increased. Meanwhile, US authorities are urging OPEC to increase oil production. This may be related to the excessively sharp increase of US gasoline prices.
Bitcoin's price is continuing its upward movement and is currently trading around $ 46,000 partially thanks to the return of retail investors. In terms of cryptocurrencies and the stock exchange, it is worth paying attention to the Coinbase financial report. The company showed brilliant results for the second quarter.
GBPUSD pair bounced off the lower limit of the descending channel and rose sharply following inflation data from the US. Pair broke above the upper limit of the 1:1 structure and is currently testing 200 SMA (red line). Source: xStation5
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