EURUSD in knockout again. Overview for 14.09.2022

The market major on Wednesday is depressed, the current quote is 0.9980.

The euphoria in the EUR did not last long: as soon as demand for the USD retuned, the parity level reminded of itself. Rally in the dollar pushed aside both aggression of the ECB and a decline in the stop prices for gas in Europe.

The USD attracted much attention after the US inflation statistics came out. The yearly CPI had been expected to drop to 8.1% but it reached 8.3% after 8.5% the year before. Base inflation grew to 6.3%, which is the high since this March.

Earlier it seemed that the key factor of growth US inflation were expensive energy carriers, but the report demonstrates that in August, gasoline prices lost over 10.6% , while food prices sky-rocketed.

The ambiguous inflation report seriously increased the probability of the interest rate growth by 75 base points at the September meeting of the Fed. The perspective of growth by just 50 base points now looks unrealistic.

On Wednesday, the market remains impressed by the inflation statistics. However, the industrial production report for July in the Euro zone and the US PPI in August may attract attention. Anyway, the demand is now at the dollar’s side, and it is quite confident.