This second consecutive monthly increase in the US CPI confirms market forecasts that the Federal Reserve will maintain interest rates at its next meeting.
After threatening to reach the $900 mark, the dollar showed a negative fluctuation throughout the day and stood at 3:17 p.m. $ 883.54 away from the annual highs.
This Wednesday, attention turned to the inflation data in the United States, a week before the Federal Reserve meeting where it will be decided to Increase or maintain tariffs of interest.
This accelerated the year-over-year increase in inflation in the United States by 3.7% while the underlying variable, which excludes the most volatile prices, was at 4.3%, four-tenths less than in July.
Dollar price and US interest rate
According to market analyst at XTB Latam Ignacio Mieres, “If we focus on the underlying data (which receives particular attention from Federal Reserve members), we find that the annual data shows a decline, while the monthly data reflects inflationary pressures.”
“This combination of mixed factors has Maintained expectations around the Interest charges. In other words, the market remains convinced that the Federal Reserve will not raise interest rates and will keep them at their current levels until June 2024,” Mieres added.
This is also what the Econsult economist predicts, Arturo Claro and his couple’s freedom and development, Soledad Monge. The latter explains that in this way “the dollar would be given a break.”
Although the dollar gained slightly this morning and was close to $900, the price fell after internalizing the US inflation results.
The scientist from the Faculty of Economics and Government of the University of San Sebastián, Michele Labbépredicted that the dollar price should be close to $850 in the short term.
In this context, it is also important to analyze the role of other factors such as the high price of a barrel of oil and persistent doubts about the Chinese economy and the performance of the Asian country’s real estate sector.