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🚨 Caution is needed as we await today's US inflation data!
• All eyes are on today's US inflation data, as the US Consumer Price Index (CPI) will be released.
• Market expectations indicate that the US inflation index will rise from 2.6% to 2.7%.
🌟 We are likely to witness significant fluctuations in the markets when this news is released, especially since it is considered one of the basic economic indicators that the US Federal Reserve relies on to determine its monetary policy and its decision on interest rates.
🔥 The impact of inflation data will be strong on currencies, metals, oil and stocks, so please trade and manage risks carefully today.
💵 The US Dollar Index is stable above the 106.00 level, coinciding with the rise in US Treasury yields. As markets await US inflation data today, as the US Consumer Price Index (CPI) will be released.
📊 Gold rises to a two-week high as geopolitical tensions escalate, and the market awaits US inflation data for further clues on the Fed's interest rate direction.
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• At dawn on Tuesday, the Australian Central Bank kept the interest rate as it is at 4.35%.
⬅️ The Australian Central Bank gave signals that it is looking forward to cutting the interest rate in the coming weeks after assurances of a decline in inflation.
• Therefore, we witnessed a decline in the Australian dollar against other currencies.
• In general, the US dollar is still in a better position against currencies such as the euro, franc and pound.
👈 Tomorrow, Wednesday, we will witness an important day awaiting the release of US inflation indicators that will determine whether the Federal Reserve will cut interest or fix it on the 18th of this month.
⬅️ If inflation actually rises as expected to 2.7%, the Federal Reserve may not move to cut it and thus support the rise of the dollar, and vice versa.
⬅️ Also, tomorrow, the Canadian interest rate decision is expected to be reduced by half a point.
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• The European Central Bank, Bank of Canada, Swiss National Bank and Reserve Bank of Australia will announce interest rate decisions.
• The European Central Bank and Swiss National Bank are expected to cut rates by 0.25%, the Bank of Canada by 0.50%, while the Reserve Bank of Australia will leave rates unchanged.
💵 Cautious moves dominated currency market trading on Tuesday, as the dollar rose slightly, amid volatile trading in a narrow range, before the release of US inflation data tomorrow.