Market Movements: Strong Dollar Amid US Economic Data Release

Financial markets have witnessed strong movements recently, coinciding with the release of important US economic data, most notably inflation data that has contributed to bolstering the dollar's performance and its impact on various indicators and assets during trading sessions.

In this context, the US Bureau of Labor Statistics released the Consumer Price Index (CPI) data for October on Wednesday, showing that the results were in complete alignment with market expectations, despite the overall Consumer Price Index showing growth higher than that of the previous month.

According to the reported data, the annual inflation rate in the US Consumer Price Index was about 2.6% in October, matching market expectations, which indicated the same growth rate. The previous reading recorded about 2.4% in September. As for the core US inflation rate (which excludes food and energy prices), the index grew by 3.3% year-on-year by the end of October, which was also consistent with expectations and the previous reading in September, which was 3.3%.

Here is a look at the performance of financial markets:

Performance of the US Dollar Index

The US Dollar Index achieved positive performance following the release of US inflation data, which enhanced market expectations that the US Federal Reserve would not proceed with aggressive interest rate cuts. The dollar index rose by 0.54% and is currently stable around the 106.50 levels.

Performance of Gold:

Spot gold contracts dropped significantly alongside the rise of the US Dollar Index during trading, with gold being traded near $2,582 per ounce.

Performance of Crude Oil Contracts:

US crude oil contracts saw an increase of about 1.00%, reaching levels of $68.59 per barrel. Additionally, Brent crude spot contracts are trading near $72.43 per barrel, up by 0.99%.

Bitcoin Prices:

Bitcoin recorded an increase of about 5.33% alongside optimism in the markets regarding a bright future for digital currencies under the new Trump administration, with Bitcoin currently trading around $92,724, its highest level ever.

Performance of US Stock Indices:

The Dow Jones Industrial Average rose by 0.39% and is currently traded around 44,081.67 points. Meanwhile, the S&P 500 index increased by 0.38%, trading near 6,006.95 points. Also, the Nasdaq Composite Index rose by about 71 points, settling near 19,352.76 points.

These movements illustrate the markets' reactions to inflation data and US monetary policy expectations, which support the strength of the dollar and affect the performance of gold, oil, digital currencies, and stocks variably.

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