Massive sell-off on the markets. US100 -3%, US500 loses more than 2% and EURUSD drops 1%
Today's inflation data showed a much smaller decline in CPI inflation than expected and a very strong rise in core inflation. Core inflation of 6.3% YoY shows that increasing housing costs are a problem for American citizens. These data caused the markets to expect a 75 bp rate hike next Wednesday and may mean that the Fed will not slow down the rate hikes after the next decision.
Strong declines can be seen on Wall Street, just before the start of the cash session. The US100 loses more than 3% and the US500 more than 2%. EURUSD is losing more than 1% and fell below 1.01.
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Inflation crushes Wall Street contracts. US100 give back nearly half of recent gains! Source: xStation5
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