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Mixed data from the US: core CPI has slipped to 2.1% y/y, worse than expected. On the other hand, jobless claims drop to 235K, the lowest in years. Housing data is also positive: housing starts leaped to 1.323 million annualized and building permits also beat with 1.229. So, most figures are good, but inflation is not really rising. Perhaps it will go up with Trump.

The US dollar is looking for a direction and after digesting the data, the greenback is making some gains.

A big bulk of US data was released, with core CPI standing out. No change was expected.  Other figures include building permits, housing starts, the Philly Fed Manufacturing Index and weekly jobless claims.

The US dollar took a second breather this week, after  making a  further advance yesterday. Later today we will hear from Janet Yellen, although her statement has already been released. Yellen seemed  cautiously optimistic,  saying a rate hike could be appropriate soon, but hasn’t sounded too upbeat.

US data (updated)

  • Philly Fed Manufacturing Index:  previous 9.7, expected 8, actual: 7.6
  • Jobless claims: prev. 254K, exp. 257K, actual: 235K
  • Housing starts: prev. 1.047 million, exp. 1.156, actual: 1.323 million, a rise of 25.5%
  • Building permits: prev. 1.225 million, exp. 1.198, actual: 1.229 million, a rise of 0.3%
  • CPI m/m: prev. 0.3%, exp. 0.4%, actual: 0.4%
  • Core CPI m/m: prev. 0.1%, exp. 0.2%, actual: 0.1%
  • Core CPI y/y: prev. 2.2%, exp. 2.2%, actual: 2.1%
  • CPI y/y: prev. 1.5%, exp. 1.6%, actual: 1.6%

More: Why the dollar is rising on the Donald