Strong points

  • Consumer prices in the United States have continued to rise higher and higher year over year since 1990.

  • Gold hit a 6-month high while Bitcoin broke above $ 69,000 before retreating.

  • The dollar hits its highest level since June.

Consumer prices in the United States hit 30-year highs

The US consumer price index (CPI) climbed 6.2% from last October, reaching levels not last seen in 1990, dampening inflation expectations and economic stimulus packages.

Data, released on Wednesday, showed that consumer prices rose 0.9% in October, down from 0.4% in September, with cumulative year-over-year inflation rising rapidly like no other. has never been the case since December 1990.

The Federal Reserve may now consider revising its stance on interest hikes, with the market betting on a potential move to come as early as December of this year.

Financial analyst Jeremy Siegel said the CPI data showed a “embarrassing” scenario , Telling CNBC:

Listen, stocks love inflation until the Fed took it seriously and they never took it seriously . “

Siegel believes Fed Chairman Jerome Powell will take a more serious approach to the inflation problem if the upcoming consumer data report proves something like the recently released one.

In the near term, markets are expected to fluctuate based on new readings of inflation around the world as well as the sentiments of policymakers in the US and Europe.

The dollar wins against its peers amid inflation fears

The dollar is set to end the week strong for the first time since June as the market offers an earlier-than-expected move to increase interest rates by the Federal Reserve. As noted above, this comes after the United States experienced its biggest inflation jump in three decades.

The dollar gained against the yen and the euro on Friday, reaching highs of 114.265 against the yen and $ 1.1439 against the euro. The dollar also gained against the Swiss franc and the pound sterling, with an impact initially felt in the commodities market as copper prices fell early on Friday morning.

Gold hits 5-month peak as Bitcoin hits $ 69,000

Gold traded at its highest price point in five months, peaking above $ 1,860 an ounce as investors rushed to safe-haven assets amid concerns over inflation in the markets. global markets. Gold cut some of the gains on Friday, losing 0.46%, or $ 8, in the past 24 hours to currently switch hands around $ 1,852.58 an ounce.

In cryptocurrencies, Bitcoin hit a record high above $ 69,000 thanks to strong institutional inflows. Ether, the native cryptocurrency of the Ethereum network, topped $ 4,800. Like gold, both crypto assets reduced gains but remain bullish as the market sees a further head start in a historically positive 4th quarter.

Bitcoin is at $ 64,104 while ETH is trading around $ 4,674.

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