The surprisingly sharp fall in consumer prices in the US weakened the dollar on Wednesday. In return, the euro rose sharply. The common currency rose 1.2 percent to $1.0334. US inflation fell in July. This increases hopes that the wave of inflation will subside. At the same time, the US Federal Reserve can book the declining rate of inflation as a stage victory, since it recently fought the escalating inflation with unusually large interest rate hikes. She wants to follow up in September. The extent to which it tightens the reins is likely to depend largely on the development of consumer prices.
Many investors are now speculating that the Fed could introduce less aggressive monetary policy. The price of gold benefited from this, rising to $1,807 per troy ounce. The precious metal is becoming more attractive again as a non-interest-bearing form of investment with lower interest rates.
Upbeat news about Russian oil being routed through the Druzhba pipeline pushed oil prices lower. At $95.40, a Brent barrel cost around one percent less. The supply disruption had fueled fears of supply problems on Tuesday. Oil flows to Central Europe via the Druzhba pipeline will resume shortly after payment of the transit fee for using the Ukrainian section of the pipeline, Hungarian energy company MOL announced. Concerns about demand also weighed on prices. Fears of a recession and falling demand are the main reason Brent crude is trading below $100 a barrel, said PVM analyst Stephen Brennock. According to insiders, crude oil stocks in the US have recently increased more than expected. This also ensures relaxation on the supply side.