Today, we will learn data on inflation in the United States. Decisions of the Federal Reserve, the valuation of the US dollar, bonds, and gold may depend on them.
The annual inflation rate in the United States probably accelerated to 6.8 percent in November. - according to the consensus. That would be the highest reading since June 1982. It would also mark the eighth consecutive month that inflation has remained above the Fed's 2 percent target. Excluding the volatile components, namely food and energy prices, core inflation could rise from 4.6 percent to 4.9 percent, the highest level since June 1991.
How the U.S. wants to fight inflation
The causes appear to be the effect of last year's low base, the global rally in commodity prices, rising demand, wage pressures and supply chain constraints. These can still push prices higher.
Jerome Powell, chairman of the Federal Reserve, recently noted that inflation may not subside in the second half of next year and the U.S. central bank is expected to double the pace of tapering next week.
President Joe Biden's administration also appears to be taking steps to tame inflation. These include setting up a supply chain task force to ease congestion and release oil reserves.
Gold price and major currency pair ahead of data release
In anticipation of the inflation data, which will be published at 14:30, the EUR/USD seems to be under the level of 1.1300.
An ounce of gold priced in US dollars costs USD 1770 this morning. It seems that these two markets may be particularly sensitive to today's publication.
Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Forex service)
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