How did the markets react to the critical inflation data from USA?

The US inflation data, which came below market expectations, led to a decline in the dollar index and US Treasury yields, while gold prices rose. Meanwhile, stock markets showed positive movement.

How did the markets react to the critical data?

The US October inflation, the most important data of the week, was announced. With the data coming below market expectations, the markets became active. US Treasury yields and the dollar index declined, and with the reverse correlation effect, gold prices rose. Stock markets also started to rise.

The US inflation data is crucial as it is one of the most important indicators the US Federal Reserve (Fed) looks at when deciding on monetary policy. Looking at market pricings after the data, it is expected that the Fed will start cutting interest rates in May.

How did the market react?

The global stock market indices welcomed the data that came below expectations positively. Borsa Istanbul rose by over 1%.

While the ounce price of gold was trading at $1945 before the data, it rose to $1970 after the surprise data. As of 18:03, the ounce of gold is trading at $1966, up 1.04%.

The dollar index fell below 105 after the important data, hitting a low of 104.51. Currently, it is trading at 104.52 with a 1.05% decrease.

After the inflation data in the US, the 10-year bond yield dropped by 11.60 basis points to 4.51%. The 2-year bond yield also fell by 12.7 basis points to 4.90%.

The Euro/dollar exchange rate tested the highest level since September 5th, reaching 1.0835.

While the Dollar/TL maintained its sideways movement, the gram price of gold rose to 1813 liras due to the rise in the ounce of gold. Currently, it is finding buyers at 1810 liras with a 1.22% premium.