© Reuters
Investing.com – The Federal Reserve minutes were released yesterday to shed further light on the world’s most important monthly report, the US inflation report, which Fed members are trying to reduce by using aggressive monetary policy.
The year-on-year main CPI rose 8.2%, while pundits expected the Dow Jones to rise 8.1%, down from 8.3% the previous reading.
On a monthly level, it increased by 0.4%, while experts had expected a 0.2% increase.
It increased (excluding food and energy) year-on-year by 6.6% and experts had expected a 6.5% increase.
On the other hand, it increased by 0.6%, which is higher than the expectations of experts by 0.5%.
On a monthly basis, it has fallen by -0.1 since September.
The US economy received 228,000 jobless claims, a higher than expected figure of 225,000, and that’s an increase from the previous week’s reading, which only recorded 219,000 applications received.
Average unemployment claims in 4 weeks increased to 211.5 thousand, from 206.5 thousand.
Markets after the data
The US dollar index rose strongly after the data, going from negative (loss of 0.5%) to positive and climbing 0.43% in the minutes following the negative data.
The euro fell 0.40%, dropping below 0.97 to 0.9649 against the dollar.
Gold fell by a full point and gold contracts are now trading at $ 1,661.45 an ounce, while spot contracts are also down 1%, to $ 1656.53 an ounce.
US treasury bond yields rebounded to become overly positive, 10-year treasury bond yields increased 2.32% and are now 3.993%, while two-year treasury bond yields increased by 3.53% to 4.4383%.
Silver fell 2.33% and fell below $ 19 to $ 18.5 an ounce.
Oil contracts also fell, losing 1.39% and 0.96%.
And US index futures turned into violent losses in pre-open trading and the S&P index lost 1.84% in pre-open trading, as did Jones futures fell 1.44% and the Nasdaq indices fell by 2.6%.
Markets before data release
The American fell sharply, losing 0.5% of its value, to 112.668 against a basket of foreign currencies. US yields also fell. 10-year treasury bond yields lost 0.82% of their value reaching 3.870%, while the two annual treasury bond yields stabilized at 4.2869%.
As for gold, it climbed before data was released to 1682.6 for futures contracts, up 0.3%, while spot contracts rose 0.18% to $ 1676.32 an ounce. , and jumped after falling more than 2% yesterday to levels of $ 19,140 an ounce, up 1.11%.
Oil is trading sideways after falling yesterday on mounting fears of a recession resulting in violent demand weakness.
It has now registered at 0.9744 against the dollar, up 0.42%, while it has fallen against the dollar by 0.12%, and the dollar is now at 18.5889 Turkish lira.
And futures contracts saw an increase in pre-opening trading, as futures contracts for the Nasdaq indices rose 1.06%, 0.98%, and 0.82%, respectively.
And it dropped to as low as $ 19,000, to swim to $ 18,706 for the symbol, down 2.14%, while Ethereum lost 4.41% of its value and is now $ 1,240.83.
