Inflation Rises More Than Expected To 3.2% In February, Rebuffs Expectations Of June Fed Rate Cut
Portfolio Pulse from Piero Cingari
In February 2024, U.S. inflation rose to 3.2%, exceeding expectations and dampening hopes for a June Fed rate cut. The CPI's year-over-year increase and the core CPI's monthly rise both surpassed forecasts, affecting market predictions and leading to a surge in the Dollar Index (DXY), as tracked by the Invesco DB USD Index Bullish Fund ETF (UUP). Treasury yields increased, and S&P 500 futures traded lower, indicating market adjustments to the unexpected inflation data.
March 12, 2024 | 12:35 pm
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The Invesco DB USD Index Bullish Fund ETF (UUP) surged following the release of the higher-than-expected inflation report for February 2024, indicating a stronger dollar.
The unexpected rise in inflation led to a surge in the Dollar Index (DXY), directly benefiting UUP, which tracks the DXY. This indicates a short-term positive impact on UUP as the dollar strengthens against a backdrop of higher inflation.
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