It should be noted that these data affect a country's economy and investors' decision making. Regarding the United States as the world's leading economy, the data reflected above have triggered serious problems in terms of the acquisition of goods and services.
This data is published by the U.S. Bureau of Labor Statistics (BLS). For the month of May, inflation reached 9.1%, its highest level since 1981.
However, the FED or Federal Reserve has not been able to maintain or lower the inflation rate that the giant of the North has been suffering. It is evident that macroeconomic policies have not been sufficient to collect the excess liquidity.
Even though the FED has raised interest rates by 0.75% and sold treasury bonds. A correction in the inflation rate may generate friction on a global scale as financial bubbles may implode not only in the U.S. but in the rest of the world's financial markets.
The data to be released on August 10, 2022 may turn out to be negative for the U.S. economy and this translates into investors buying back stocks and other securities.
There is a flurry of corporate moves either mergers and acquisitions: Vista buys Avalara for $8000M, Pfizer buys Global Blood Therapeutic for $5000M, Whirlpool acquires Insinkerator, a subsidiary of Emersom Electric for $3000M and CVS could buy Signify Health for $5000M. Although market reaction will be subdued pending CPI release.
For non-dollar pairs may have positive movement including cryptocurrencies such as: Bitcoin, Ehterium, Cardano also currencies may be moving moderately higher such as the pound, euro, yen, New Zealand dollar and precious metals such as gold as well as index such as the Dow Jones and Nasdaq.
Many questions remain as the Federal Reserve has said that inflation is either transitory or on the verge of what some scholars have called the great global recession.