- US CPI inflation surges in October
- EURUSD pair breaks below 1.15 level
- Gold tested resistance at $ 1860
- Bitcoin hit new all-time high
- Rivian (RIVN.US) goes public
The main event of today's session was the release of US inflation data. The CPI reading showed that inflation rose to 6.2% YoY, which is the highest level since 1990. The structure of inflation is still mostly driven by energy and car prices, however price pressures are also visible in slower-moving categories like housing and rents. This is likely a source of particular concern for Fed policymakers, because it increases the risk that price pressures could last longer than initially expected. Core inflation increased to 4.6% y / y.
Inflation concerns pushed the EURUSD pair to the lowest levels this year. After testing the 1.1510 handle, the bulls had hopes for a rebound, however after the European markets closed, the dollar's purchase accelerated and the pair fell significantly below 1.1500.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appInterestingly, high inflation caused gold to break out of the long-term consolidation zone. Precious metal price jumped above the 1,833 level and tested resistance at$ 1,860 level. Nevertheless, later in the session, the US dollar strengthened further and gold erased some of the gains. A similar situation can be observed in the cryptocurrency market, where Bitcoin and Ethereum prices pulled back from fresh all-time highs.
A lot is happening on Wall Street. The main US indices remain under pressure, with a Nasdaq trading 1.0% lower. Tesla stock rebounded after falling 3% early in the session, however recent news related to the possible Elon Musk stock sale continues to negatively affect market sentiment. Meanwhile Rivian (RIVN.US), another producer of electric cars, made its debut on Wall Street. Upon opening, the share price rose sharply to $ 106.75, a significant increase from the IPO level of $ 78. Rivian is a company in which both Amazon and Ford have invested, which may be a significant competition for Tesla in the coming years. Rivian's debut was one of the biggest IPOs this year.
AUDUSD pair fell sharply following US CPI inflation reading and is currently testing local support at 0.7340, which coincides with 50 SMA (green line) and 23.6% Fibonacci retracement of the last downward correction launched at the end of February 2021. Should break lower occur, downward move may accelerate towards next support at 0.7185 which is marked with the lower limit of the 1:1 structure. On the other hand, if buyers manage to regain control, then another upward impulse towards local resistance at 0.7460 may be launched. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
