We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
More View more

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Nebraska Department of Agriculture reports that the China trade delegation has canceled their visit $DXY $SPX #Tradewar
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: France 40: -0.26% US 500: -0.33% Wall Street: -0.35% Germany 30: -0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/eDYtqwsUTc
  • Nebraska Department of Agriculture says China agriculture delegation cancels US farm visit to Nebraska according to RTRS #Tradewar $SPX
  • New Montana tourism campaign slogan: 'Visit Montana or the markets will drop. It's Time.' https://t.co/HemCbRKFIP
  • The MSCI #EmergingMarkets index down to session lows, covering the upside gap attained at Friday's market open as risk aversion engulfs financial markets in the wake of China's delegation team cancelling a farm trip to Montana. Will this bode ill for ongoing talks? #TradeWars https://t.co/AfeI8sL1mx
  • Anti-fiat #Gold prices at session highs as US government bond yields tumble following Chinese delegation team canceling farm trip in Montana #TradeWars https://t.co/byTaNE763d
  • 🇺🇸 (USD) Baker Hughes U.S. Rig Count (SEP 20), Actual: 868 Expected: 881 Previous: 886 https://www.dailyfx.com/calendar?utm_source=Twitter&utm_medium=TweetRobot&utm_campaign=twr
  • Big move on $SPX this afternoon on news that China trade officials have cancelled Montana visit https://t.co/rm6nZrFCbK
  • Sentiment deteriorating after Reuters report that the China delegation team cancels a visit to a farm in Montana, with officials set to return back to China sooner. #SP500, #AUDUSD, #NZDUSD and #USDJPY hitting session lows https://t.co/2du2JORtZ8
  • #Gold prices are in consolidation just below long-term trend resistance. Get your $gld technical analysis from @MBForex here:https://t.co/e0dOvLqpaY $XAUUSD https://t.co/Q7LFeIOWD2
Slowdown in U.S. Consumer Price Index (CPI) to Fuel EUR/USD Rebound

Slowdown in U.S. Consumer Price Index (CPI) to Fuel EUR/USD Rebound

2018-10-11 11:00:00
David Song, Currency Strategist

Trading the News: U.S. Consumer Price Index (CPI)

Fresh updates to the U.S. Consumer Price Index (CPI) may fuel the recent rebound in EUR/USD as the headline reading is expected to narrow to 2.4% from 2.7% per annum in August.

Image of DailyFX economic calendar

Even though the Federal Open Market Committee (FOMC) appears to be on track to further normalize monetary policy, signs of easing price growth may drag on the U.S. dollar as it curbs the central bank’s scope to extend the hiking-cycle. As a result, limited threat for above-target inflation may force the FOMC to soften its hawkish tone, and Chairman Jerome Powell & Co. may continue to project a longer-run interest rate of 2.75% to 3.00% especially as the ongoing shift in U.S. trade policy clouds the economic outlook.

However, an unexpected uptick in the CPI may put pressure on the Fed to step up the pace of policy normalization as the economy sits at full-employment, and indications of faster inflation may curb the recent recovery in EUR/USD as it boosts bets for another rate-hike in 2018. Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

Impact that the U.S. CPI report has had on EUR/USD during the last print


Data Released



Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)



09/13/2018 12:30:00 GMT





August 2018 U.S. Consumer Price Index (CPI)

EUR/USD 5-Minute Chart

Image of eurusd 5-minute chart

The U.S. Consumer Price Index (CPI) narrowed more than expected in August, with the headline reading slipping to 2.7% from 2.9% per annum the month prior, with the core rate of inflation highlighting a similar dynamic as the figure crossed the wires at 2.2% amid forecasts for a 2.4% print. A deeper look at the report showed the weakness was led by a 1.6% decline in the cost of apparel, with prices for medical care also falling 0.2% in August, while transportation costs increased another 0.9% during the same period on the back of higher energy prices.

The batch of lackluster data prints dragged on the greenback, with EUR/USD coming off of the 1.1620 region to close the day at 1.1690. Review the DailyFX Advanced Guide for Trading the News to learn our 8 step strategy.

EUR/USD Daily Chart

Image of eurusd daily chart
  • Broader outlook for EUR/USD remains tilted to the downside amid the series of failed attempts to break/close above the 1.1810 (61.8% retracement) hurdle, but the recent decline in the exchange rate appears to have stalled ahead of the 1.1390 (61.8% retracement) to 1.1400 (50% expansion) region as the Relative Strength Index (RSI) reverses course ahead of oversold territory.
  • In turn, the 1.1640 (23.6% expansion) to 1.1680 (50% retracement) now sits on the radar, with a break/close above the stated region raising the risk for at the 1.1810 (61.8% retracement) hurdle.

For more in-depth analysis, check out the Q4 Forecast for EUR/USD

Additional Trading Resources

New to the currency market? Want a better understanding of the different approaches for trading? Start by downloading and reviewing the DailyFX Beginners Guide!

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader series on how to effectively use leverage along with other best practices that any trader can follow.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.