Dollar pops then drops after CPI

"Men who can both be right and sit tight are uncommon." - Jessie Livermore

 

 

 

HEADLINES

 

 

 

• Dollar gains, then slides after hot U.S. CPI data
• Fed's Bullard calls for big hike in interest rates to fight inflation
• Gold hits 2-week high on mounting inflation worries, softer dollar
• Oil prices fall on fears of aggressive Fed rate hike
• Wall Street falls as hot inflation turns Fed official 'dramatically' hawkish
• Brent Crude Oil set to reach the psychological $100 level – Credit Suisse
• CRUDE OIL Short Term: Downside favored

 

 

 

FOREX

 

 

 

Dollar gains, then slides after hot U.S. CPI data

 

 

The dollar initially rose against major currencies on Thursday after U.S. consumer prices in January came in higher than expected, but it later fell amid expectations of other central banks joining the Federal Reserve in fighting rising inflation.

The consumer price index rose 0.6% from December, the Labor Department said, while in the 12 months through January, CPI jumped 7.5%, the biggest year-on-year gain since February 1982.

 

 

Fed's Bullard calls for big hike in interest rates to fight inflation

 

 

St. Louis Federal Reserve President James Bullard said on Thursday that he has become "dramatically" more hawkish in light of the hottest inflation reading in nearly 40 years, and he now wants a full percentage point of interest rate hikes over the next three U.S. central bank policy meetings.

Within minutes, Bullard's view became the market's view, with rate futures contracts now fully pricing an increase in the Fed's target range for its policy rate to 1%-1.25% by the end of its policy meeting in June, with some bets on an even steeper rate hike path.

 

 

 

COMMODITIES

 

 

 

Gold hits 2-week high on mounting inflation worries, softer dollar

 

 

Gold prices touched their highest level in two-weeks on Thursday, supported by a weaker dollar and as data showing a spike in U.S. consumer prices boosted the metal's appeal as a hedge against inflation. Spot gold prices fell as much as 0.6% after hotter-than-expected U.S. inflation data supported the case for aggressive rate hikes, but recouped losses to trade 0.2% higher.

 

 

Oil prices fall on fears of aggressive Fed rate hike

 

 

Oil prices fell on Thursday despite forecasts for a steeper rise in energy demand, with crude turning negative on fears that the U.S. Federal Reserve will hike rates more aggressively than expected to fight inflation.

 

 

 

STOCKS

 

 

 

Wall Street falls as hot inflation turns Fed official 'dramatically' hawkish

 

 

Wall Street sank on Thursday after U.S. consumer prices data came in hotter than expected, and subsequent comments from a Federal Reserve official raised fears the U.S. central bank will hike rates aggressively to fight inflation.  

U.S. stocks deepened their losses after St. Louis Federal Reserve Bank President James Bullard, a voting member of the Fed's rate-setting committee this year, said the data had made him "dramatically" more hawkish. He said he now wanted a full percentage point of interest rate hikes by July 1.

 

 

 

ANALYSIS

 

 

 

Brent Crude Oil set to reach the psychological $100 level – Credit Suisse

 

 

“Brent Crude Oil clearly remains the key highs of 2018 and 2021 at $86.70/74, which has brightened up the medium-term picture with next short-term resistance seen at $94, before $96.23/75, and then the important psychological $100 resistance, where we would expect a fresh consolidation phase to emerge the very latest. Should strength directly extend though against our expectations, we would see resistance next at $103.95.”

 

 

 

CHART

 

 

 

CRUDE OIL Short Term: Downside favored

 

 

Technical View: Short position below 92. Target 88.5. Conversely, break above 92, to open 93.

Comments: The pair is expected to resume descent after correction.

Source: Trading Central

 

 

 

CALENDAR

 

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/business/sp-500-nasdaq-futures-slip-ahead-inflation-data-2022-02-10/
https://www.reuters.com/markets/europe/better-risk-sentiment-help-antipodeans-traders-wait-us-inflation-data-2022-02-10/
https://www.reuters.com/markets/europe/gold-stuck-tight-range-traders-brace-us-inflation-data-2022-02-10/
https://www.reuters.com/business/energy/oil-prices-steady-investors-eye-us-iran-nuclear-talks-2022-02-10/
https://www.fxstreet.com/news/brent-crude-oil-set-to-reach-the-psychological-100-level-credit-suisse-202202100759