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The US dollar rises while rising inflation revives strong betting bets

The dollar hit the euro in 16 months on Thursday, after rising US consumer prices hit a 10-year high-stakes market bet on the Federal Reserve tightening monetary policy.

After a sharp fall overnight, eurozone prices fell 0.3 percent to $ 1.145, the weakest since July 2020.

Sterling also hit its lowest price against the dollar since December 2020, despite UK economic indicators. growth is better than 0.6 percent in September since last month.

Consumer prices in the US it rose 6.2 percent in October since last year, the figures were released Wednesday, beyond what economists expect and launch. big sale in the US government’s short-term debt since the March 2020 global market turmoil. The Treasury market closed on Thursday during national holidays.

“Market expectations for initial US price increases [from current record lows] from 2023 to mid-next year, on the basis of inflation, “said Mobeen Tahir, research director at WisdomTree ETF.

Jay Powell, chairman of the Federal Reserve, has pledged “patience” in raising interest rates at the end of a major US bank meeting last week. Fed with it stored His view of inflation was “temporary”, driven by inequality in access and demand and re-opening of the economy since the closure of 2020.

CPI data was “as bad as it looks”, said Steve Englander, a Standard Chartered analyst, writing to clients. Standard Chartered inflation in the US, which does not include food and energy, as well as inflation in affected areas such as used cars, hotels and airports, rose 0.45 percent from September to October.

Meanwhile, Christine Lagarde, President of the European Central Bank, said by the end of last month that eurozone prices would fall below the 2 percent target they need by 2023.

“The ECB often seems to be in a state of disarray for a long time,” said Tatjana Greil Castro, head of public markets for credit bureau Muzinich & Co.

Isabel Schnabel, a member of the ECB board, also signed in a Speaking earlier this week that the eurozone central bank could keep its interest rate below zero until it completes its anti-bond program.

Wall Street stocks have not changed much, with the benchmark S&P 500 doing enough to end a two-day loss with less than 0.1% gain.

Nasdaq Composite Weighted Professional also gained 0.5 percent after suffering a 1.7 percent Wednesday.

The combination of strong gains and strengthening of financial data has helped push stock markets to record higher prices in recent weeks, and they stay close to their peaks even in recent times.

Many traders judge stocks that are less affected by inflation concerns than debt repayments. According to the DataTrek research firm, during the rise in commodity prices from 1972 to 1980, the value of S&P companies increased by 120%, and continued consumer price increases by 110% immediately.

The European Stoxx 600 share index closed 0.3 percent, while the London FTSE 100 gained 0.6 percent while exports strengthened by weaker pounds.

In Asia, Hong Kong’s Hong Kong index closed 1 percent and China’s CSI 300 rose 1.6 percent, according to media reports that the Beijing government is preparing to support the ailing sector.

Additional reports of Nicholas Megaw in New York

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