DXY or the index of America’s Dollar made it’s position stronger near the highest record in two decades. It was above the limit of 104.00 on Thursday Asian trading session. 

The April 2022 America inflation data showed a higher growth that what consensus is expected. It was released on a New York Session. That is why; this situation was quite good for the Fed interest rate and US dollar appreciation.

Based on a report from a bureau there it can be seen that the CPI increased by.3% monthly period type . It was once again for this month or in April 2022 and it was quite amazing.

That number is slower than the March session, but beyond the consensus estimation of 0.2%. This IHK data was even increasing by 0.6% for a monthly session as well.

The Inflation in America is Still Fantastic

The number reported above showed that it was twice higher than a 0.3% growth in March. In a yearly basic, the inflation speed in United states remain at a quite fantastic level. 

The major level was noted at 8.3 percent meanwhile the core level was at 6.2%. The final result for a core HK was 0.6%. That percentage may stop the estimation made by most economists. 

In this case for an example is 12 raises of HK for about 0.6% may become to the other positions sometime such as at 7.4%. That number is far away from the Inflation target made by the Fed for about 2%.

This data is a sign that the inflation speed has been passing it’s highest peak. However, it was still near the highest position in 40 years period so far based on the release. 

Market Participants Prediction about the Interest Rate

The situation above brings a consequence where the Fed interest rate increase will still aggressive. Now most people are predicting about the interest rate increase that might be happened in the future. 

That can be for about 50 basis point again in two FOMC meetings ahead. 15 of June and 27 of July cpuld be the schedule of that appointment made by them. An analyst gave his comment about this.

He said that the America’s inflation data which is stronger than expectation has been increasing a concern above The Fed. That institution may need to accelerate the policy tightening. 

Again, the Comdoll or commodities dollar has the worst decline overall. One the trigger is like a strengthened greenback which made the commodities prices and equity dropped as well.

The Deposit Interest Rate could be cut 

The AUD / USD and NZD / USD were slumped almostn 0. 9 percent so fare since the beginning of yesterday trade. Meanwhile, the USD/CAD pair consolidated in it’s highest range since last 2020.

The EUR / USD currency pair continues to maintain their support area around the level of 1.0500. Christine Lagarde and some other central Bank representatives have declared Ghent desire. 

It is especially to raise the deposit interest rate in a policy meeting which will be held in July. However, the ECB rate hike expectation was then covered by The Fed aggressiveness in, recession in the European continental and dollar appreciation.

Pound Sterling was also Slumped

Elsewhere, Pound Sterling also noted it’s decline for 6 consecutive days to the United States dollar. It was caused by the bolder interest rate expectation range from time by time in the market. 

The GBP / USD was broken at the beginning because of the UK central bank policy announcement which was quite dissapointing. That announcement was done last week. 

In that time, BOE just raised the rate for 25 basis point up to the level of 1%. It was not 50 basis point just like what most traders are expected. Besides that, a delayed quantitative tightening might be happened.