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US core inflation 1.9% as expected – USD stronger

No surprises from what the Fed cares about: core inflation rose 0.2% m/m and 1.9%, exactly as expected. Headline inflation rose 0.2% m/m and also 0.2% y/y. The latter is an upside surprise.

The US dollar is slightly stronger.

The United States was expected to see core inflation rising 1.9% y/y in October, just like in September. Headline CPI carried expectations for +0.1% after 0% beforehand. On a monthly basis, both indicators carried expectations for +0.2%.

The US dollar looked relatively strong towards the publication.

  • EUR/USD traded at 1.0670 after more dovish ECB hints. The pair slips below 1.0660 after the release.
  • GBP/USD was at 1.5212 after a rise in core inflation. Cable is struggling with 1.52.
  • USD/JPY was at 123.20, shy of the 123.60 resistance level. The pair rises 10 pips.
  • USD/CAD traded around 1.3309 as oil prices staged a minimal recovery. No big changes are registered here.
  • AUD/USD was around 0.7130 after upbeat meeting minutes from the RBA. The Aussie slides a few pips.
  • NZD/USD traded  around 0.6483. It is a few pips lower.

Later we have industrial output and capacity utilization rate. More importantly,  tomorrow’s  FOMC Meeting Minutes will play a big role in shaping expectations.

— more coming

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.