Market Overview December 13

Major US inflation data for November is expected to be released later today, and this data is expected to provide global markets insight into the present situation of consumer pricing and pressure on the Federal Reserve.

Economic News
2023年12月13日

Major US inflation data for November is expected to be released later today, and this data is expected to provide global markets insight into the present situation of consumer pricing and pressure on the Federal Reserve.

The data is consistent with a series of cautious statements made by Fed officials, suggesting that the Fed may soon begin to loosen monetary policy.

The first US interest rate reduction of this cycle is now expected to occur in March 2024, according to

the current odds.

Fed Statements

Interest rates have reached the proper tightening levels, as indicated by the Fed Chair Jerome Powell's statement on Friday. Despite this, Powell left open the possibility of additional policy tightening if necessary.

John Williams, the president of the New York Fed, stated on Thursday that interest rates have peaked and are now at the right levels to contain inflation.

Mary Dale, the president of the San Francisco Fed, stated that interest rates are currently well-positioned to contain inflation, but she emphasized that it is still too soon to discuss rate reductions.

Us Interest Rate

Currently, there is a 2% chance that the US will raise interest rates at the December Fed meeting.

There was a 50% chance of a 0.25% interest rate drop at the Fed meeting in March, and an 80% chance of one at the Fed meeting in May.

US Inflation Statistics

Investors will now be watching for significant US inflation data later today, which will be vital in revealing potential changes to US interest rates.

November's y/y increase in US consumer prices is predicted to be 3.1%, down from 3.2% in October.

Core prices are predicted to rise by 4.0%, as previously.

The US dollar

It goes without saying that unexpectedly high inflation data will strengthen the US dollar and delay the anticipated date of an interest rate reduction, and vice versa.

Robert Thompson

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The dollar fell against a group of significant competitors in European trade on Tuesday, escalating losses for the fifth day in a row and plunging below a three-month low as speculators dumped the currency and US Treasury bonds.

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Market Overview November 29

In European trade on Tuesday, the euro gained ground against a group of significant competitors, continuing its advances against the dollar for the third session. It also nearly reached a three-month high ahead of the testimony of European Central Bank President Christine Lagarde before the Brussels Parliament.

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Economic News

Market Overview November 22

In European trade on Monday, sterling gained ground against a group of significant competitors, maintaining its advances against the dollar for the second straight day and eroding a two-month high due to a robust appetite for risk.

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