US inflation came in parallel to expectations, confirming that headline inflation in the US stagnated near 0.3% level for a third month, the yearly figure rebounded from 2.4% to 2.6% as expected, while core inflation remained stuck at 3.3%. The short-end of the US yield curve eased on expectation of further Federal Reserve (Fed) cut in December, but the long-end is pushing higher on bets that inflation won’t ease to 2% if the Fed cuts defying the inflationary Trump policies.

The US dollar pushes higher, the US dollar is now in or near the overbought territory against most majors. Big caps consolidate, small caps come under pressure, while the European indices don’t take advantage of weaker euro.

In energy, oil made a short attempt to the upside yesterday on a surprise decline in US oil inventories last week, but gains remain limited. Numerous failures to clear the $72.85pb Fibonacci resistance keeps the market in the hands of the bears, with the ambition to pish the price of a barrel to $65pb target. 

 

This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

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