Economic and fundamental developments 14-02-2022

14 Feb 2022 12:00 PM
  • Financial markets saw some action in yesterday's trading after the U.S. Labor Department reported its U.S. Consumer Price Index. The annual reading came at 7.5%, hitting new 40-year high expectations as some economists were bracing for inflation to rise to 7.3%.
  • US Treasury yields soared after the CPI reading as the US 10-year Treasury note rose to 2.02%, above the 2% threshold for the first time since 2019. Following the release of inflation data, the chances of a rate hike of 50 basis points in March rose to nearly 50%.
  • Major pairs saw a lot of volatile movement on Thursday following the release of US inflation figures as the dollar index seesawed, reaching weekly highs before moving lower against its rivals.
  • Wall Street edged lower, with the Dow Jones industrial index shedding over 500 points. The equities' bearish tone helped the greenback recover some ground ahead of the daily close.
  • Precious metals faced some technical selling and are finding little bullish traction following hotter than expected inflation data as gold prices are trading below $1825.

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