The euro and Bitcoin fall as the USD rises on higher-than-expected CPI.
The USD has had its worst run in a few days as markets await the first customer inflation data in a year. On Tuesday, customer prices rose by 8.3% year-on-year in August, exceeding expectations; the news sparked a sell-off. EURUSD is down 1%, and BTCUSD is down 4%, as bulls fight to hold $21,000 support.
Higher inflation indicates that the Fed will continue to raise interest rates. Cheap money is not likely to return to the financial markets anytime soon.
The Labor Department reported that the CPI increased by 0.1%, whereas analysts predicted a 0.1% decrease. It may appear insignificant, but this is how vulnerable the markets are in the second half of 2022.
For the past few months, the US Dollar has been victorious. Cryptocurrencies and stocks rose as the dollar fell. At the same time, oil prices have been going down, and it looks like the tide of the war in Ukraine is changing as the defenders are able to push the Russian forces away.
However, optimism is still threatened because Azerbaijan has just launched an attack on Armenia in the disputed Nagorno-Karabakh region. Armenia has always had the support of the Russian Federation, and it looks like Azerbaijan decided to take advantage of Moscow’s long involvement in the invasion of Ukraine.
SimpleFX traders could profit from both price movements by shorting (selling) oil and the dollar and opening long positions on hot assets. The platform has recently attracted a large number of ethereum holders with their unique Stake & Trade accounts. They allow users to stake any amount of ETH in their pool, earn interest (which is added to the account every day), and trade with the locked funds. SimpleFX users can not only stake their tokens but also use leveraged shorts to hedge their long positions on Ethereum.
To commemorate the upcoming merge and transition of the Ethereum blockchain to proof-of-stake, SimpleFX has launched a special limited-time offer in which traders can receive a $150 gift for transferring funds to Stake & Trade accounts now.
What exactly does rising inflation imply?
In recent months, we have observed a one-of-a-kind situation. It was the US dollar versus all other currencies and asset classes. Market sentiment shifts from the belief that equities and cryptocurrency have reached their bottom and that now is the time to buy crypto stocks. If inflation remains high and interest rates remain high, the economy may suffer.
For the past few days, the US dollar has been losing ground. Many people have been left wondering what is causing this decline and what it means for them and their wallets. In this article, we will look at the reasons for the dollar’s decline as well as some of its consequences. Finally, we will provide some pointers on how you can capitalise on this trend.
Concerns about the US economy and its prospects are one of the most frequently cited reasons for the US dollar’s recent decline. Other things to blame are rising interest rates in many countries and trade tensions between the US and its trading partners.
People all over the world are struggling to keep their money safe from inflation. They have been investing in stocks and cryptocurrencies for many years. They are now facing a double threat: inflation and falling asset prices. The only way out is to actively trade. SimpleFX and other apps allow you to profit whenever the price of bitcoin, gold, USD, Tesla, or other symbols rises or falls. Trades that are executed at the right time can help you multiply your funds, while negative balance protection and adjustable leverage allow traders to diversify their risk and achieve a consistent return on their capital. Try SimpleFX right now.