U.S. consumer prices rose solidly in January | 11 Febrero 2022

11 Febrero 2022, USD/JPY

U.S. consumer prices rose solidly in January

USDJPY trading plan:

U.S. consumer prices rose solidly in January, leading to the biggest annual increase in inflation in 40 years, fueling financial markets speculation for a hefty 50 basis points interest rate hike from the Federal Reserve next month. In the 12 months through January, the CPI jumped 7.5%, the biggest year-on-year increase since February 1982. That followed a 7.0% advance in December and marked the fourth straight month of annual increases in excess of 6%. St. Louis Federal Reserve President James Bullard said that he has become "dramatically" more hawkish in light of the hottest inflation reading in nearly 40 years, and he now wants a full percentage point of interest rate hikes over the next three U.S. central bank policy meetings. This is a positive signal for the dollar.

Investment idea: buy 115.80 and take profit 116.47.

David Johnson
Analyst of «FreshForex» company
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