Dollar Index Plummets, Stocks Soar as Inflation Cools Faster Than Expected
The US dollar index fell and stocks rose higher on Tuesday following a positive inflation report for October.
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USDC$0.9996-0.01%
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LEO$9.49-0.84%
ZEC$413.84-6.89%
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Retail sales fell for the first time in eight months in October, although the drop was smaller than the expected 0.3%.
The US dollar index fell and stocks rose higher on Tuesday following a positive inflation report for October.
The new CPI report is due Tuesday, and a softer-than-expected inflation would likely propel US stocks further in the following days.
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The annual inflation rate stood at 3.7% in September, exceeding the expected 3.6% increase.
In September, the Producer Price Index saw the sharpest increase since April, pointing to persisting inflationary pressures.
The reasons for the Federal Reserve to remain hawkish pile up as new jobs data report points to remarkable strength in the US economy.
Oil prices retreated on Wednesday as Fed's pledge to keep interest rates 'higher for longer' sparked demand concerns.
After the crisis in spring, banks may come under pressure once again as soverign bond yields soar to new peaks.
The latest inflation figures have led traders to believe that the Federal Reserve will pause in September.
Oil prices extended 10-month highs on Wednesday. Meanwhile, annual inflation rose higher-than-expected to 3.7% in August.