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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/lKvEMf4QRe
  • Weakness in equity markets continued last week as losses built and technical patterns hint further bearishness might be ahead. Get your #equities update from @PeterHanksFX here: https://t.co/GGVrB3r7if https://t.co/HPHUC8EG3o
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/q80wSAoxXP
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/7mc19Gxrvm
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/09/26/Gold-Price-Outlook-Rising-US-Dollar-Sinks-XAUUSD-Will-Losses-Extend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gPhy0KoW3W
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDnpPbn https://t.co/Xtk5g4JQEB
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/SsUguHB39W
  • 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:https://t.co/1oygcFMFNs https://t.co/aD1ZWhTWZp
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here: https://t.co/719LgjFmYG https://t.co/SSoqjONUzA
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here: https://t.co/HJpngnerzY https://t.co/g6X8ABQDwY
US Dollar Shrugs Off Decline in Preferred Fed Inflation Figure

US Dollar Shrugs Off Decline in Preferred Fed Inflation Figure

Share:

Talking Points

  • US Dollar little changed after Fed’s preferred inflation measure was released
  • Core personal consumption expenditure rose 1.6% y/y in March versus 1.7% in Feb
  • The Fed stated inflation could remain low which promotes dovish restraint at this week’s FOMC

Having trouble trading the US Dollar? This may be why.

The Dow Jones FXCM US Dollar Index showed a limited reaction to the release of the US core personal consumption expenditures data. The Fed’s preferred measure of core inflation rose 1.6 percent (YoY) in March, in-line with economists’ expectations. That said, this did temper the previous month’s pace when prices grew 1.7 percent (YoY) in February. This pace check would pull the indicator back from its fastest clip of growth since December 2012 and in turn ease pressure in the Fed to pursue a tightening regime.

The so-called headline figure – including volatile items like energy and food – showed a modest 0.1 percent month-over-month (MoM) increase in price pressures. It’s annual pace eased from a 1.0 percent gain to 0.8 percent. From its February low of $26.05, crude oil prices rose 47 percent through the end of April, and the commodity furthered rose more than 75 percent from that February low to its closing price this Friday. If this buoyancy proves durable, the transitory low-inflation environment that Fed members have reflected on over consistently in policy statements may contribute to the monetary policy conversation.

With the Fed’s dual mandate focused on employment growth and a stable 2 percent inflation target, today’s release showed that prices – at least at the moment – are heading in the wrong direction. The central bank did announce at its most recent monetary policy announcement that inflation should remain low in the near term, but the committee went on to suggest that prices should rise to its target over the medium term. However, after the neutral stance of the Fed at its April 27 policy meeting and the weak showing for 1Q GDP, the market may struggle to share the forecast.

US Dollar Shrugs Off Decline in Preferred Fed Inflation FigureUS Dollar Shrugs Off Decline in Preferred Fed Inflation Figure

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

DISCLOSURES