The three major indexes of US stocks fell today, from their highest levels in yesterday's closing, following positive inflation data that boosted the chances of a rate hike soon. The consumer price index rose more-than-expected in August, the biggest reading in seven months, by 1.9 % on yearly basis.
The possibilities of interest rates hike in December increased to 50% for the first time since July, according to the FedWatch tool, before the next FOMC meeting next week, which is expected to announce the outline of a reduction of the federal balance sheet of 4.2$ trillion.
The dollar rose against most of its rivals after the data, as the dollar index rose to 92.64 before settling at 92.25, the greenback also rose against the yen to reach 111 levels before stabilizing below the strong resistance level at 110.70.
Bank of England kept interest rates unchanged at 0.25% historically low, but warned that it may raise interest rates for the first time in 10 years in the coming months if inflationary pressures continue to grow, pushing the British pound to a significant rise to 1.34 Which represents a strong resistance area at the upper line of the ascending channel on the daily chart and below the 100-week exponential moving average on weekly chart.
The Swiss National Bank also kept interest rates at -0.75% and noted that despite the devaluation of the CHF, it is still high and that negative interest, as well as intervention in the currency market if necessary, will remain necessary tools for the Bank.
In Australia, the labor market data showed that the economy continued to add jobs for the sixth month in a row by 54.2k jobs in August, while unemployment stabilized at 5.6%, followed by the Australian dollar to its highest daily level at 0.8015 before falling due to the US data.
For the fourth day in a row, oil prices continue to rise in an attempt to surpass the 50$ a barrel for the first time in a month, following the International Energy Agency's forecast that oil markets will continue to tighten as demand for fuel increases.
Gold declined as we expected in the September 11 daily wrap up (and we may see gold declines reaching 1326.10 and then 1316 levels) to reach 1315.60$, the lowest since August 31.