❗ Powerful market reaction after US inflation data, dollar strengthens, indices in retreat
At 1:30 pm BST, we learned the highly anticipated inflation data from the US, which surprised investors. Both the headline and core readings exceeded expectations. Core inflation rose 6.6% year-on-year (6.5% was expected), while the headline reading fell less than expected to 8.2% YoY (8.1% was expected). This means that the Fed will not change its stance and will continue its policy and raise interest rates.
How did the market react?
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Create account Try a demo Download mobile app Download mobile appIt is not difficult to be surprised by the dynamic reaction in the dollar market and stock market indices. The U.S. currency clearly gained immediately after the publication, while stock indices in Europe, as well as U.S. index contracts, clearly retreated. The German DE30 dived almost 300 points, while the US technology index (US100) slid more than 400 points!
EURUSD dynamically rebounded from the resistance zone 0.9746 - 0.9737 and is testing support at 0.9652. Source: xStation5
The US100 index reacts rapidly to the US inflation data and falls more than 400 points! Looking at the technical situation, just before the release of the data, the quotes tested the resistance resulting from the 1:1 geometry and the EMA100 average. So it can be said that the data was a trigger to fill the technical layout.
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