News & Analysis at your fingertips.

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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Will be covering the Japanese #Yen to see how retail positioning could shape the outlook for $USDJPY, $AUDJPY and $EURJPY Starting in about 30 minutes! Signup for the session below:
  • Join @ddubrovskyFX at 20:00 EST/00:00 GMT for a webinar on what other traders' buy/sell bets say about price trends. Register here:
  • #BlackRock: We are neutral U.S. equities. We see U.S. growth momentum peaking and expect other regions to be attractive ways to play the next leg of the restart as it broadens to other regions, notably Europe and Japan $SPX $NDX
  • #BlackRock: The new nominal theme leads to a steeper yield curve expectation than market pricing. We see yields rising gradually, keeping us broadly underweight government bonds, particularly for longer maturities #trading $TLT
  • BlackRock: We are overweight European equities, and neutral Japan #trading
  • Gold prices face off with rising Treasury yields as jobs data approaches. Meanwhile, iron ore prices caught a small bid on bullish port activity out of China. Get your market update from @FxWestwater here:
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • #Blackrock: We are moderately pro-risk and keep some cash to potentially further add to risk assets on any market turbulence #trading $SPX $RUT $DJIA
  • RT @BrendanFaganFx: Natural Gas Outlook: Price Continues to Soar as Severe Winter Shortage Looms $NG $NG_F Link:…
  • USD/CAD is set to snap a five-day sell-off with today’s rally breaking near-term downtrend resistance. Get your $USDCAD market update from @MBForex here:
USD Fades Disappointing CPI Data Ahead of FOMC

USD Fades Disappointing CPI Data Ahead of FOMC

Gregory Marks,

THE TAKEAWAY: US CPI MoM comes in below 0.2% estimates at 0.1% -> CPI YoY comes in at 1.5% vs. 1.6% estimated -> CPI Ex Food and Energy meets estimates of 1.8% -> USD Lower

U.S. CPI for the month of August came in below expectations on a month by month basis, but met economists’ surveys for the Ex Food and Energy YoY print at 1.8%. Hourly wages in the U.S. rose 0.7% from a year earlier, but major pressures on the month over month readings came from energy costs that fell 0.3% from July.

The Consumer Price Index is an economic measure for differences in prices in the U.S. either on a month over month or year over year basis. The index tracks a basket of goods and services and is meant to give an overall picture of price changes in the economy. The print is especially important due to Fed fears of declining inflation levels under their zero interest rate policy. Lower inflation levels at this stage would be fuel for Fed doves to push ahead with continued asset purchases while a slightly higher inflation print would be viewed as support for the inevitable and necessary taper of QE3.









CPI Ex Food and Energy MoM








CPI Ex Food and Energy YoY




CPI Core Index SA








Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) (5-Minute Chart)

USD_Fades_Dissapointing_CPI_Data_Ahead_of_FOMC_body_Picture_2.png, USD Fades Disappointing CPI Data Ahead of FOMC

Source: FXCM Marketscope

Although weaker than expected MoM and YoY CPI data would usually be viewed in the context of a taper vs. no taper debate, market participants seem to be standing on the sidelines ahead of the FOMC rate decision and announcements on asset purchases. Although misses in key CPI data might have normally stirred speculation as to whether the Fed would delay a taper in favor of higher price levels, the market is not trying to front run the Fed ahead of tomorrow.

Take note that markets have and will most likely remain tight due to the major event risks ahead. Stay up to date on developments live by following the DailyFXTeam Twitter or checking out the live trading room in the Analyst on Demand service.

USD_Fades_Dissapointing_CPI_Data_Ahead_of_FOMC_body_Picture_1.png, USD Fades Disappointing CPI Data Ahead of FOMC

For more information on event risk, check out the DailyFX Calendar.

Gregory Marks, DailyFX Research Team

New to Forex? Watch this video.

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