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13.10.2021: Investors digest US inflation data (S&P500, DXY, USD/CAD, BTC/USD)

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On Tuesday, the main US stock indices declined. However, this time, their drop was more moderate than the day before. Now, investors are assessing US inflation data for September, which has been published today. Let’s discuss this report in more detail.
Inflation in the US remained at the same level of 4%. So, investors will have to take into account other factors when choosing trading strategies.
Apart from that, the House of Representatives is likely to finally approve an increase in the US debt limit by $480 billion today. The Senate has already passed legislation to temporarily raise the debt ceiling, putting off the risk of default until early December. So, the total amount of the US public debt will total $28.9 trillion. In December, congressmen will again resume discussion of this issue.
Currently, the stock market is gripped by uncertainty. The latest macroeconomic reports turned out to be rather controversial. What is more, the reporting season for the third quarter is about to start. As usual, it begins with earnings reports of the largest banks such as JPMorgan, Bank of America, Citigroup, Wells Fargo, Morgan Stanley, and Goldman Sachs. Analysts predict that the results of the quarterly reports may be rather mixed. Revenue is likely to remain unchanged, whereas the net profit is projected to grow. In the meantime, the S&P 500 index lost only 0.2% at the close. However, its decline may continue. It is likely to stay in the range of 4,310 - 4,350 until the publication of earnings reports. Now, it is trading at the level of 4,345.
The US dollar is currently volatile, especially after the publication of inflation data. Yesterday, it made an attempt to break above the upper border of the range but failed to consolidate there. So, it returned to its previous levels of 93.90 and 94.60. Since inflation has not dropped, the US dollar index may start rising again to 95 as we predicted earlier.
The trajectory of the USD/CAD pair is also hard to predict. If earlier the pair remained weak due to rising oil prices, now its trajectory will depend on the US currency’s movements. If the US dollar strengthens considerably, the pair may return to the upper limit of 1.2400 – 1.2500. However, if the greenback stands still, the pair is likely to move down to the 1.2400 level. Now, the USD/CAD pair is still at a crossroads, hovering in the middle of the range of 1.2450.
Bitcoin began to gradually drop to $51-52,000. Analysts believe that this is just a technical reversal and it will not affect BTC’s further growth. Now, bitcoin is worth $54,800. After a temporary decrease, it will be able to rally again to new highs.
To sum up, market participants are digesting the US inflation report for September. Now, everyone is curious whether the decline in inflation that occurred in August will continue or there will be a new surge. Currently, inflation remains steady. Today, traders will also have the opportunity to assess the Fed’s meeting minutes. Watch our video reviews and stay up to date with the latest market news!

00:00 US employment data
00:21 US Inflation Rate
01:06 S&P500
02:09 DXY
02:37 USD/CAD
03:13 Bitcoin
03:37 Resume

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