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US inflation stays stable – USD strengthens

Better than expected headline CPI: 1.7% y/y in September and 0.1% m/m. Core CPI is  exactly the same. The Fed can end QE as planned. In addition, real weekly  earnings rose 0.2%, lower than 0.3% expected, but the prior number was revised to the upside: from 0.4% to 0.5%.

EUR/USD is sliding under 1.27 once again, GBP/USD is under 1.6050 and USD/JPY above 107.

Also the loonie is sliding, but this is also due to weaker than expected Canadian retail sales.

The US  Consumer Price Index was expected  to remain flat in September, and sliding to rise of 1.6% y/y. Core CPI was expected to rise 0.2% and stay at 1.7% y/y.

The Fed watches  these inflation numbers but looks more closely at the Core PCE Price Index. However, this  figure might cool down some of the doves that worry about a fall in inflation. The fall in oil prices was more marked in October, so this isn’t represented here.

More:  Here Is Why The USD Will Rally Even Without Higher US Rates? – RBS



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.