Latest Promotion (2022)
Language

Week In Review: Oct 17th  to Oct 21st

weekly review

US CPI Data

According to data issued on Thursday by the US Bureau of Labor Statistics, annual Core CPI jumped to 6.6% in September from 6.3% in August. This was the highest Core reading in 40 years, indicating that the majority of inflation came from areas other than food and energy.

Furthermore, the inflation components of the Michigan Consumer Sentiment Index were higher in September than in August. The 1-year Consumer Inflation Expectation for October rose to 5.1% from 4.7% the previous month. Moreover, the 5-Year Consumer Inflation Expectation for October climbed from 2.7% in September to 2.9% in October.

UK CPI

The UK’s August CPI data of 9.9% YoY, which brought it back under double digits, will be this week’s most eagerly awaited CPI reading. The Core reading increased slightly to 6.4% YoY in September, with the September reading projected to be 10% YoY. The Bank of England won’t meet again until November 3rd, so this will be a fascinating reading for them.

To prevent the economy from falling, BOE has been buying Gilts and this was already over last Friday. During the previous meeting, the bank announced that it would start selling its assets, but this was actually moved to October 31. BOU must raise rates because inflation is getting close to 10%. The question now is, how much are they going to raise rates to combat inflation?


New Zealand CPI
 
New Zealand will release its Q3 inflation data on Tuesday which is anticipated to have decreased from 7.3% to 6.6%. From the perspective of Reserve Bank of New Zealand (RBNZ) policymakers, a decline of 70 bps is enticing. If this happens, it will support the argument that the RBNZ should slow down the pace of rate hikes.

Related Articles

forex trading philippines

What’s next for OPEC?

On Sunday, December 4, OPEC will meet to discuss whether to increase or cut oil production. It might also maintain the production at the present

Read More »

Notice. Juno Markets uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our cookies usage.