Dollar ignores weak inflation, concerns rise in China and cryptocurrencies rise

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This is what you need to know to trade today Wednesday, September 15:

Optimism over weaker-than-expected US inflation figures has given way to concerns about the United States and also about the Chinese economy. Updated figures on UK and Canadian inflation and US industrial production are of interest. Cryptocurrencies have been moving higher, while oil and gold have consolidated their gains.

Raging Inflation Debate: The United States’ core CPI consumer price index came in below estimates at 4% year-on-year and initially sent the dollar lower on the hope that the Federal Reserve will delay reducing its bond buying program. While it convinced some that the higher inflation was the result of the rapid and therefore transitory reopening, others see its stagflation – effects – and a cooling of the economy.

See: Quick Look at US Inflation: Team Alleging ‘Transitory’ Inflation Wins, Dollar Lose, Trend May Extend

However, concerns about high stock valuations, covid and other factors ended on another day to the downside for equity markets, sending the safe-haven dollar back up and back. despite falling US Treasury yields. EUR / USD is hovering around the 1.18 level, dismissing the optimistic comments from Christine Lagarde of the European Central Bank, while gold maintains some of its gains around $ 1,800.

Chinese weakness: The world’s second-largest economy reported a disappointing 2.5% year-on-year increase in retail sales. Industrial production also came below estimates with 5.3%, weighing on the prices of some raw materials. The Delta wave of covid is taking its toll. Beijing’s ongoing crackdown on its tech companies, Evergrande’s financial woes and another North Korean missile launch added to the gloomy mood.

The UK Consumer Price Index is up 3.2% YoY in August, exceeding the 2.9% expected by three tenths. The result is above 2% in July and is the highest seen since March 2012 and will add pressure on the Bank of England to raise interest rates. The UK and the EU continue to disagree on the Northern Ireland protocol. GBP / USD is trading around 1.38 again amid the strength of the dollar.

The USD / CAD it is trading around 1.27 ahead of Canada’s release of its inflation figures. WTI crude remains in profit, trading around $ 71 ahead of weekly inventory data.

The cryptocurrencies They have been moving forward, with Bitcoin trading around $ 47,000 and Ethereum near $ 3,400. ADA is stable around $ 2.40 and Solana rebounded from a previous drop.

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