US inflation hit the highest level since 1981.
This week, one of the most important data that we used to follow closely, was the US inflation, which has published yesterday, Tuesday. On the monthly scale, CPI was seen at 1.2% in March, which is the highest level that has been seen since October 2005. The consumer price index on the annual scale also tested the new record high at 8.5%, which has not been observed since 1981. Data reflecting the direct impact of the ongoing conflict in Ukraine.
Despite the fast increase of CPI, prices excluding energy and food, rose only 0.3%, lower than market expectations and the previous month at 0.5%. These numbers clearly show that in fact if we were not faced with this war, the economy was on its right way to a fast recovery. However, it still keeps the windows of hope open. In overall, published numbers are not that bad and confirm that still we can count economic development and decreasing the inflation as its results and rebalancing the supply and demand. FEOMC members may be satisfied not to act sharply.
After publishing this news and data, the US dollar index falls sharply to a daily low at 99.72. But later, with increasing the market risk, especially after not much positive news from Ukraine, recovered all its daily loss and even increased higher above the 100 mark for the first time since May 2020.
From the technical point of view also, it is in a clear uptrend with 101 as the first target at support levels respectively at 99.33 and 97.30.
