After inflation exceeded the expectations of analysts and markets and came to its highest level in thirty years (November 1990), the bets of analysts and markets increased that the US Federal Reserve would resort to raising interest rates immediately after the completion of the process of reducing the bond purchase program in July of next year, in addition to the high expectations that the Fed would speed up The gradual tapering process is expected to start this month at $15 billion per month and continue until July.
The president and members of the US Federal Reserve have always stressed that the rise in inflation is temporary and that it will not last for long and will go away with the demise of transient factors, but the question now is whether Jerome Powell and the members of the US Federal Reserve will change this opinion with the October data.
In a statement issued yesterday, Wednesday, after these figures, US President Joe Biden expressed his concern about high inflation and that it will represent a top priority for him and will seek, with his administration, to limit the rise in energy prices, the main factor in high inflation prices that threatens the economic recovery in the United States of America.
These data pushed up the prices of US Treasury bonds for two years and ten years by 10 basis points, with high bets that raising interest rates from the US Federal Reserve may not come as desired by the Fed, but rather the market will force it to do so.
The general index of the US dollar rose on the background of these developments to its highest level since July of last year, to conclude the session at 94.86 levels, up by 0.90%.
On the economic data front, Thursday, the French, American and Canadian markets will be closed today due to the Memorial Day holiday in Canada and Veterans Day in the United States of America.
The euro, in turn, is trading at its lowest level since July of last year at 1.1475, after losing more than 110 points on Tuesday, affected by the rise in the US dollar.
06/11/2024
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