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
EUR/USD
Mixed
Oil - US Crude
Mixed
Low
High
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
Wall Street
Bullish
Low
High
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
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
Low
High
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
More View more
Real Time News
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 0.69% Gold: -0.23% Oil - US Crude: -2.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/enkKZQzC4J
  • #Gold Price Technical Outlook: $XAUUSD Correction Approaching Support - https://t.co/XCkrdESFN4 https://t.co/wlvI0myFZm
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: -0.01% 🇨🇦CAD: -0.02% 🇯🇵JPY: -0.18% 🇳🇿NZD: -0.43% 🇬🇧GBP: -0.77% 🇦🇺AUD: -0.84% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/rAo0MfnXVB
  • Heads Up:🇺🇸 Fed Bullard Speech due at 16:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-27
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.91% US 500: 0.14% FTSE 100: 0.12% France 40: 0.06% Germany 30: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/hZuIomNwSE
  • The United States will not certify the autonomy of Hong Kong, putting its trade status in danger - BBG
  • RT @Lagarde: I am heartened to see this common European answer to the economic difficulties resulting from the coronavirus pandemic. #Stron…
  • Hey traders! With the bullish bias in the past few days, what are some highlights we are getting into today? Find out 👇 from @DailyFX Chief Strategist, @JohnKicklighter ! https://t.co/eXO2YWutRY
  • https://t.co/Mi7kAVUVOI
  • El crudo #WTI se juega los 35$ por barril en un marco político preocupante #oil #petroleo #trading https://t.co/B6NjYvTgs8
Disinflation Evident in March, but US Dollar Steady After CPI

Disinflation Evident in March, but US Dollar Steady After CPI

2013-04-16 13:50:00
Christopher Vecchio, CFA, Senior Strategist
Share:

THE TAKEAWAY: USD Consumer Price Index (MAR) > -0.2% versus 0.0% expected, from +0.7% (m/m), +1.5% versus +1.6% expected, from +2.0% (y/y) > USDCAD BEARISH

Did the fiscal cliff deal lay the ground work for a ‘slippery spring?’ Possibly – data out of the US continues to slide lower the past several weeks, as the March reporting period has come to pass. Today’s release of the Consumer Price Index (MAR) follows several other weak data prints as well: ISM Manufacturing (MAR); ADP Employment (MAR); ISM Services (MAR); Nonfarm Payrolls (MAR); Advance Retail Sales (MAR); and U. of Michigan Confidence (APR P). Sentiment leading up to the March budget sequestration softened, leading a clear relative reduction in economic activity.

With the payroll tax hike in full swing and the budget sequestration underway, price pressures fell by -0.2% m/m in March, down from +0.7% m/m in February, and below the flat reading that was expected, as per a Bloomberg News survey. But a look at the core readings – which excludes the more volatile food and energy components – suggests that consumption may be holding strong. In fact, Core Services rose by +2.5% y/y, just off of its post-recession high of +2.6%; retail gasoline prices fell -4.4% m/m. For now, we view this data as a sign of disinflation – positive but a decreasing rate of inflation – which may temper hawkish chatter out of the Federal Reserve.

Are you new to FX or curious about your trading IQ?

USDCAD 1-minute Chart: April 16, 2013

Disinflation_Evident_in_March_but_US_Dollar_Steady_After_CPI__body_Picture_1.png, Disinflation Evident in March, but US Dollar Steady After CPI

Charts Created using Marketscope – Prepared by Christopher Vecchio

Following the release, the USDCAD – perhaps the most sensitive major pair to consumption and production data out of the United States, given the trade relationship between the United States and Canada – traded lower from 1.0219 to as low as 1.0204. At the time this report was written, the USDCAD traded at 1.0212. Overall, the US Dollar was slightly stronger across the board, mainly due to strength seen in USDJPY and downside pressure in precious metals.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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

DISCLOSURES

News & Analysis at your fingertips.