And the so-called supercore measure, which excludes food, energy, and housing, was at an elevated 4.1% year over year in January. Seasonal factors, such as minimum wage increases and annual pricing updates, likely accounted for some of inflation’s strength last month. Since the pandemic, January has routinely posted firmer readings that tend to fade in the second half of the year. Additionally, the effects of the Los Angeles wildfires might have pushed used car prices higher, a trend that should fade quickly. The consumer price index rose 0.5% in January and 3% from a year earlier, according to the latest data released Wednesday from the Bureau of Labor Statistics.
Higher Grocery Costs Drive Up Overall Food Prices
The DXY Index is often used by traders to monitor the value of the USD in comparison to a basket of select currencies in a single transaction. It also allows them to hedge their bets against any risks with respect to the dollar. The US Dollar Index (DXY) serves as a benchmark for measuring the relative value of the American dollar to a basket of currencies of the US’s key trading partners. The index’s value is indicative of the dollar’s value in global markets.
Inflation Picks Up More Than Expected in January, Hitting 3%
A look at the Barchart Futures Market Heat Map early Tuesday morning showed nearly all sectors of the commodity complex in the red.
CPI Report: Inflation Hits 3% for the First Time in 7 Months
- A central bank has one important tool at its disposal to get inflation higher or lower, and that is by tweaking its benchmark policy rate, commonly known as interest rate.
- The New Highs/Lows widget provides a snapshot of US stocks that have made or matched a new high or low price for a specific time period.
- The dollar index (DXY00) on Friday fell by -0.52%, posting a new 2-month low and adding to Thursday’s decline of -0.58%.
- Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts.
- A central bank will try to push forward its monetary policy without triggering violent swings in rates, equities, or its currency.
When the central bank hikes interest rates substantially, this is called monetary tightening. In theory, the direction of the moving average (higher, lower or flat) indicates the trend of the market. Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts. Of course, even dismissing some of the uptick, the January data aren’t a good reading for Federal Reserve officials—especially when it comes to the so-called supercore measure, which excludes food, energy, and housing.
Newsstand
The US Dollar Index (DXY) is stuck in a game of Cluedo, and detective Fed Chairman Powell is not giving away much to nearly no clues. With traders left clueless about what or when the Fed will make its next move, slowly but surely, bonds are getting back in the graces of traders as a safe place to be in periods of uncertainty. With this, the US Dollar should solely but surely see some inflow and tick higher. The economic calendar is gearing up for Fed Chairman Jerome Powell who will give a speech for the second cryptocurrency broker canada day in a row at Capitol Hill. Atlanta Fed President Raphael Bostic and Fed Governor Waller are set to make comments as well. Capital Com Online Investments Ltd is a limited liability company with company number B.
The dollar index, which measures the U.S. currency against the other world reserve currencies, broke out to the upside after the early November U.S. election. It was more of the same this past weekend as tariffs and trade fights remain the name of the game. “While I don’t want to discount the data altogether, I think there is good reason to think that the next few months will look considerably better than this month did,” Winograd said. Fed Chair Jerome Powell said officials need to see more progress on slowing inflation before considering further interest-rate cuts.
- Economies are constantly facing inflation or deflation when prices for certain goods and services are fluctuating.
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- Read our MELANIA crypto price prediction for 2025 and beyond, with insights from third-party analysts and market experts.
- After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study.
- The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Last month’s hotter-than-expected inflation levels will no doubt create more headaches for the Federal Reserve—and likely will reignite the debate over whether interest-rate hikes may be on the table. A How to learn how to trade central bank has one important tool at its disposal to get inflation higher or lower, and that is by tweaking its benchmark policy rate, commonly known as interest rate. On pre-communicated moments, the central bank will issue a statement with its policy rate and provide additional reasoning on why it is either remaining or changing (cutting or hiking) it.
During his first testimony at Capitol Hill facing law makers, Federal Reserve (Fed) Chairman Jerome Powell did not leave many clues about the timing for another interest rate cut by the central bank, if any. Traders are mulling what to do next, with US yields slowly but surely starting to head higher this week. The dollar index (DXY00) on Friday fell by -0.52%, posting a new 2-month low and adding to Thursday’s decline of -0.58%. The dollar was undercut by Friday’s weak US retail sales report and a -5 bp decline in the 10-year T-note yield, which added to Thursday’s decline of -9 bp. Also, there were continued fears about a global trade war after President Trump on Friday said that new tariffs on autos are coming around April 2. But there’s been no evidence of disinflation with the core CPI rate since the middle of last year, writes Conrad DeQuadros, senior economic advisor https://www.forex-world.net/ at Brean Capital.
Follow the rate of the US Dollar Index (DXY) in real-time at Capital.com to spot the best trading opportunities. New delayed trade updates are updated on the page as indicated by a “flash”. Natural gas and cocoa futures posted double-digit percentage gains in December 2024. The worst-performing futures markets were palladium and world sugar futures, with over 8% declines. Markets are still relearning not to move on every statement or action from the US administration, but hearing into Thursday’s session volatility is expected to stay high.
Capital Com Online Investments Ltd is a Company registered in the Commonwealth of The Bahamas and authorised by the Securities Commission of The Bahamas with license number SIA-F245. The Company’s registered office is at #3 Bayside Executive Park, Blake Road and West Bay Street, P. O. Box CB 13012, Nassau, The Bahamas. Read our MELANIA crypto price prediction for 2025 and beyond, with insights from third-party analysts and market experts. For the major indices on the site, this widget shows the percentage of stocks contained in the index that are above their 20-Day, 50-Day, 100-Day, 150-Day, and 200-Day Moving Averages. Highlights important summary options statistics to provide a forward looking indication of investors’ sentiment.
The constituents of the foreign currency basket were altered only once when several European currencies were subsumed by the euro in early 1999. It’s just another Wednesday morning, another first day of the positioning week for funds, with Watson waiting to see what comes out of Washington. Friday’s US Jan retail sales report of -0.9% was weaker than expectations of -0.2%.
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