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Showing posts with the label Central Banks

CPI blows out at 3.1% with expectations for a 2.9% print. Stock markets drop 1%. USD dollar and oil are bid.

U.S. Consumer price index (CPI) blows out in August 2023 to 3.7% from 3.6%, prior month. 10 YR yield resistance is at 4.3%, which is at 2023 highs. The bond market is screaming for a rate hike from the Fed, as inflation has deeply imbedded itself into the American economy. NASDAQ bids are causing blindsided greed. Stock market has lost touch with reality.

Massive government intervention into the energy markets brought down inflation not Central Banks.

Speculation returns to the NASDAQ in expectation that Central Banks more so the Fed will begin to slow and pause rate hikes. The mild Northern Hemisphere winter is the reason for energy inflation falling, yet the drought in South America is painting a picture of 2022 inflation redux.

Australian Central Bank lifts rates at 0.25%, still way below the yield expectations of short end bonds. Australian Dollar sells off as commodity inflation begins to pick up again.

Bitcoin is poised to sink to single digit thousands. U.S. Dollar at two decades high pushing down speculative assets on the Federal Reserve's interest rate cycle.