US dollar is rising on the strength of robust January inflation figures.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) versus six major currencies, is rising in the wake of the January Consumer Price Index (CPI) announcement, which came in as a positive surprise. During his first hearing before lawmakers on Capitol Hill, Federal Reserve (Fed) Chairman Jerome Powell provided few hints regarding the timing of the central bank’s next interest rate cut, if any. Traders are considering what to do next, as US yields begin to rise slowly but steadily this week.
Fed Chairman Jerome Powell enters his second day on Capitol Hill.
The economic calendar is revving up for Fed Chairman Jerome Powell, who will deliver a speech at Capitol Hill for the second consecutive day. In addition, numerous more Fed speakers scheduled to speak. Raphael Bostic, president of the Atlanta Fed, and Fed Governor Waller are also scheduled to speak.
Daily market movers: Inflation is returning with a vengeance.US Dollar Index (DXY) rises to 108.50 following the CPI report.
The US Consumer Price Index data for January has been release.
The monthly headline CPI index came in at 0.5%, exceeding the 0.3% prediction and up from 0.4% the prior month.
The monthly core inflation gauge increased to 0.4%, exceeding the 0.3% predictions and compared to 0.2% in December.
The greater inflation data fuels higher US rates and, in turn, generate a stronger US Dollar (USD)
At 15:00 GMT, Fed Chairman Jerome Powell will begin his second day of testimony on Capitol Hill.
At 17:00 GMT, Raphael W. Bostic, President of the Federal Reserve Bank of Atlanta, addresses the Atlanta branch of the National Association of Corporate Directors.
At 22:05 GMT, Federal Reserve Governor Christopher Waller is set to speak at “A very Stable Conference: Stablecoin Infrastructure for Real World Applications” in San Francisco, California.
Equities are falling lower on the heels of the US CPI data. With yields rising, equities are taking a step back, falling by almost 1% on average.
CME FedWatch tool projects There is a 95.5% chance that interest rates will remain unchanged at the Fed’s next meeting on March 19.
The US 10-year yield rises to 4.63% for the third day in a row, recovering from a new yearly low of 4.40% posted last week.
