Although the market was expecting a decrease in US inflation, the data released on Tuesday revealed a further acceleration in price increases in the US, with annual CPI readings of 8.3% vs the predicted 8.1% and annual core CPI readings of 6.3% over the anticipated 5.8%.
The effects of this unpleasant surprise for the financial markets came quickly, and this revelation significantly increased the likelihood that the Fed would continue to pursue a highly aggressive monetary policy for a longer period of time than first anticipated.
The CAC 40, which was up prior to publishing, is currently down 0.88% to 6277 points.
But without a question, the EUR/USD exchange rate experienced the worst penalty. Prior to the publication, the pair was heading in the direction of 1.0170; but, as of the time of writing, it is back very near to parity, at 1.0010.
Bitcoin is no slouch either; at the time of writing, the value of the cryptocurrency had increased from about $22,750 to $21,400.
The Dow Jones is down 1.87%, while the S&P 500 is down 2.4%, in the US indexes.