In the United States, in December 2022, the unadjusted CPI rose by 6.5% year-on-year, which is expected to rise by 6.5%, and the previous value rose by 7.1%. After the release of the CPI data, the U.S. dollar index plunged to a seven-month low; U.S. bond yields accelerated their decline, and the inversion of 2-year/10-year U.S. bond yields expanded. Gold and crude oil go up hand in hand! February gold futures hit the highest closing price since April 29, and WTI crude oil futures rose six consecutive times for the first time in 11 months! | Related reading (China Fund News)
Gong Deming
Throughout last year, everyone has witnessed how much the Fed’s interest rate hike can have an impact on the market. Whether the Fed will raise interest rates next time; Long necks are waiting for the release of the CPI data.
The sharp drop in CPI data this time also shows that inflation in the United States is well under control. This may mean that the Fed’s policy shift in the future will at least not raise interest rates as much as it did some time ago. The U.S. dollar index will naturally weaken. A sharp rise is normal and an expected market reaction.
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