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فوری اکاونٹ کھولیں
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13.07.202312:51 Forex Analysis & Reviews: Dollar sees one of the deepest one-day declines since January 2023

Exchange Rates 13.07.2023 analysis

In their report, the US Department of Labor stated that consumer prices doubled in June, rising by 0.2%. Much of the gains, about 70%, came from the housing category.

This shows that although inflation slowed down, with core inflation falling from 5.3% to 4.8%, the value remains above the Fed's target level of 2%, so prices in all sectors continue to be quite high.

Accordingly, the Fed may raise interest rates by 0.25% at the July FOMC meeting.

The CME FedWatch tool follows the same idea, declaring a 92.4% probability of a rate hike on July 26. However, it painted a 12.9% chance that the Fed will sequentially increase interest rates at both the July and September FOMC meetings.

Nevertheless, although inflation started to decline, it remains at a high level, so the Fed may have to raise the rate twice this year.

Exchange Rates 13.07.2023 analysis

Dollar saw one of the deepest one-day declines since January 2023, trading below the level of 100.79. The Fed will not ignore this, and precious metals, as safe-haven assets, will increase their growth.

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