Octa’s Research: Inflation in the U.S. is Still a Concern

The U.S. Bureau of Labor Statistics will release the Consumer Price Index (CPI) report on Wednesday, 10 April.

The latest U.S. inflation report showed that rising prices continue to pressure U.S. consumers. The annual consumer inflation in February 2024 ticked higher to 3.2%, above forecasts that January’s 3.1% level would remain. More than two-thirds of this increase is due to rising housing and petrol prices which means that the Fed is far from achieving its 2% inflation target.

‘Investors should not be so upset about rising inflation as the data is largely in line with market expectations, as also reported by the Fed Chairman in his speech last week’, said Kar Yong Ang, the Octa financial market analyst. ‘However, the rise in energy prices will continue to weigh on the index components,’ he added.

With consumer inflation in the U.S. continuing to grow, the probability of interest rate cuts is decreasing, giving more power to the U.S. dollar. For currency market participants, this means that EURUSD may keep declining for a few days after the publication of inflation data and target 1.0730–1.0740.

About Octa

Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services already utilised by clients from 180 countries with more than 42 million trading accounts. Free educational webinars, articles, and analytical tools they provide help clients reach their investment goals.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

Octa has also won over 70 awards since its foundation, including the ‘Best Educational Broker 2023’ award from Global Forex Awards and the ‘Best Global Broker Asia 2022’ award from International Business Magazine.