Inflation data to be released in the US today - 11.8.2021

Today, the US dollar index is rising for the 4th day in a row. Investors were awaiting the release of today's July inflation data. Earlier Fed Chairman Jerome Powell expressed the opinion that the strong rise in consumer prices in the United States is temporary. Nevertheless, market participants do not exclude that high inflation may prompt the Fed to tighten monetary policy. In June this year, US inflation reached 5.4% in annual terms, which is the highest since August 2008. This is well above the Fed's target of 2%. According to forecasts, inflation in July will not change and will amount to the same 5.4%. There was no significant economic data in the US yesterday. In the Eurozone and Germany, the ZEW Economic Sentiment indicator was released, which turned out to be significantly worse than forecasted. This contributed to the weakening of the euro. EURUSD is now declining for the 7th day in a row. Inflation data for July is due in Germany today. The outlook is negative for the euro.

On Tuesday, there was no single trend among the American stock indices. The Dow and S&P 500 rallied and renewed all-time highs. Nasdaq dropped. The main positive factor was the approval in the US Senate of a bill on the allocation of economic assistance for the development of US infrastructure in the amount of $ 1 trillion. Now it will have to be approved by the House of Representatives. First of all, the infrastructure plan supported the shares of industrial and energy companies. Caterpillar, Deere and Vulcan Materials rose 2%. Citigroup and Wells Fargo also gained 2% on higher U.S. yields. 10-Year Bond up to 1.37% per annum. Last week it was 1.13%. In China, India and South Korea, the number of patients with coronavirus has increased. This contributed to the decline in stock indices: Hang Seng, BSE Sensex and KOSPI.

World oil prices are rising today for the second day in a row. U.S. The Energy Information Administration predicts an increase in US gasoline consumption to 8.8% million barrels per day (bpd) from 8 million bpd in 2020. The independent American Petroleum Institute announced a decrease in oil reserves in the United States for the week by 816 thousand barrels and motor fuel reserves by 1.1 million barrels. An additional positive factor was the approval in the Senate of the allocation of assistance to the US economy in the amount of $ 1 trillion. This can increase the demand for fuel. The main negative factor for oil prices is the increase in the number of patients with coronavirus and the emergence of new, more infectious strains of this disease. Iraqi Oil Minister Ihsan Abdul Jabbar announced his country's plans to double oil production to 8 million bpd by 2027. Now Iraq produces about 3.9 bpd.