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.

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
Subscribe
Please try again
Wall Street
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
GBP/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
More View more
Real Time News
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/XPtqedJjyk
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/m6XH4n43UQ
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/yy64N01p2b
  • PBOC injects net 90 billion Yuan in open market operations - Yuan reference rate set at 6.4526 per USD - BBG
  • Australia to trial home quarantine for arrivals who are vaccinated - BBG
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/OJByiwIppr https://t.co/moWS7rqAQG
  • RT @FxWestwater: New Zealand Dollar Outlook: $NZDUSD Drops on US Dollar Bids, Wall Street Losses Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/16/New-Zealand-Dollar-Outlook-NZDUSD-Drops-on-US-Dollar-Bids-Wall-Street-Losses.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.c…
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/UcleaZEAaW https://t.co/dRD22S792t
  • 🇳🇿 Business NZ PMI (AUG) Actual: 40.1 Previous: 62.6 https://www.dailyfx.com/economic-calendar#2021-09-16
  • The Canadian Dollar has been caught in broad ranges against the Euro and the US Dollar, but can the upside bias in USD/CAD and EUR/CAD prolong? Find out here:https://t.co/8DubboXsjv https://t.co/SQAz8sCpmv
US Dollar Drops, Gold Bounce Back on US CPI Dip

US Dollar Drops, Gold Bounce Back on US CPI Dip

Justin McQueen, Strategist

USD, CPI Price Analysis & News

  • US Core CPI Falls Short of Expectations
  • USD Under Pressure, Gold Bouncing Back

US Core CPI Falls Short of Expectations

DATA RECAP: The headline rate rose 0.3% on the month below expectations of 0.4%, which saw the yearly rate print at 5.3%, matching estimates. The core reading rose 0.1% vs 0.3% expected, while the yearly rate also fell short of expectations at 4% vs 4.2%. Transitory factors that have been a focal point for much of the increase have begun to roll over as used cars saw a slight decrease of 1.5%, marking the biggest monthly drop since November 2016. Elsewhere, stick components such as shelter costs rose a marginal 0.2%. As such, this reinforces the Federal Reserves outlook that the inflation spike is expected to be transitory. Alongside this, with ISM Mfg. and Non-Mfg prices paid (Figure 1.) heading lower, risks to inflation is tilted to the downside.

US Inflation Components

US Dollar Drops, Gold Bounce Back on US CPI Dip

Source: BLS

Figure 1. US CPI vs Average ISM Manufacturing & Non-Manufacturing Prices Paid

US Dollar Drops, Gold Bounce Back on US CPI Dip

How to Trade After a News Release

MARKET REACTION: The USD came under pressure across the board. Similarly, US yields have also dipped in the wake of the inflation report, while gold prices saw a slight bounce. However, given that the Fed acknowledges that they have already hit their taper condition for inflation making substantial progress, the impact of this report on the Fed’s outlook is limited. That said, with equity markets firmer, this will reign in those calls of stagflation.

USD, US RATES & GOLD REACTION TO US CPI

US Dollar Drops, Gold Bounce Back on US CPI Dip

Source: Refintiv

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

DISCLOSURES