CPI brings back volatility
Over the past few days, we have seen a softer dollar, but the gains made by other currencies got wiped in a matter of minutes. The August inflation print came out higher than the market expected, and we saw currencies across the board trade back at similar levels to Friday. The euro looked to trade above 1.02 against the dollar earlier this morning but has since flirted to get back below parity. The pound has lost over 1% in the past few hours while the rand lost 30cents to the dollar since the release of the August CPI print. With the market already pricing in a 75bps hike by the Fed next week Wednesday, the inflation number has put more fuel to the fire that the Fed could remain extremely hawkish in the meetings to come.
#Inflation #Markets #Currencies #InterestRate #FED
