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Next Friday, tens of thousands of railroad workers are poised to go on strike, potentially bringing a nearly a third of all US freight to a grinding halt. It would be the first national rail strike in 30 years. As the clock ticks, the threat of the work stoppage is already having an impact.
Dollar’s Poor Trading Day
It was generally a poor day for the US dollar and a bad experience of falling to the worst level in more than two weeks against a basket of rival currencies at the start of the week. The dollar index softened despite the firm anticipation that the Fed will hike interest rates by 75 basis points at its next policy meeting.
The market sentiment sent the dollar index to a two-decade peak of 110.79 last Wednesday, but later, it fell to its lowest point since Aug. 26 at 107.81 ahead of Tuesday’s US Consumer Price Index. The headline Consumer Price Index in the United States is expected to fall to 8% year on year in August, while the core measure, which excludes food and energy, is expected to rise.
Benefiting from the Dollar’s drop, the Euro climbed to more than a three-week high against the dollar, with ECB officials calling for additional aggressive monetary tightening. There was some news that Ukrainian forces have made significant progress in pushing back Russian troops and that too has supported a better tone across European markets.
The Euro rose around 1.5% to 1.0198, its highest since August. 17, and well up from a 20-year lows of 0.9862 scored last week.
Economic Data:
Monday’s US session witnessed the release of no significant economic data as all eyes focus on Tuesday’s CPI reading for August to assess the current situation of inflation and consumer prices.
Other Developments:
Oil is still benefiting from demand levels as well as supply concerns regarding the developments on the Iranian, Chinese and Russian fronts in addition to oil’s latest surge attributed to the outcome cut decided by OPEC+. Wall Street enjoys a rally that has continued since Wednesday on improved risk appetite that supports equities.
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