This second consecutive month of increases in US CPI reaffirms market expectations that the Federal Reserve will keep interest rates on hold at its next meeting.
After threatening to hit $900, the dollar showed negative movement during the day and remained unchanged as of 3:17 p.m. $883.54 is moving away from this year’s highs.
All eyes were on US inflation data this Wednesday, a week before the Federal Reserve Board of Governors will decide whether to convene. raise or maintain interest rates Are interested.
Therefore, the year-over-year inflation rate in the United States will accelerate its rise; 3.7% Meanwhile, the underlying variable, which excludes the most volatile prices, was 4.3%, down four-tenths from July.
Dollar price and US interest rates
According to XTB Latin American market analysts: Ignacio Mieres “Focusing on the underlying data (which has received particular attention from members of the Federal Reserve Board), the monthly data reflects inflationary pressures, whereas the annual data reflects declines. You can see what it shows.”
“This complex combination of factors has led to expectations maintained around Interest level . In other words, the market maintains its belief that the Federal Reserve will not raise interest rates and will keep them at current levels until June 2024, Mier added.
This is also predicted by Econsult’s economists. arturo claro and its pair of freedom and development, Soledad Monge . The latter explains that in this way “the dollar will be given a break.”
The dollar rose slightly this morning to nearly $900, but prices fell after internalizing the US inflation results.
Scholar at the Faculty of Economics and Public Administration, University of San Sebastian; Michelle Labbe predicted that the dollar price would be close to $850 in the short term.
In this regard, it is also important to analyze the role of. Other factors These include the high price of a barrel of oil and persistent doubts about the performance of the Chinese economy and the Asian country’s real estate sector.
