U.S. Inflation Data

• Core Consumer Price Index (CPI) (g / g) (Oct), fact 2.1%, forecast 2.2%.
• Core Consumer Price Index (CPI) (m / m) (October), fact 0.2%, forecast 0.2%.
• Consumer Price Index (CPI) (m / m) (Oct), fact 0.3%, forecast 0.3%.

An inflation report in the USA for October largely justified forecasts, but showed a slowdown in inflation growth on an annualized basis, which became the main negative factor in the report.

Fig. 1. U.S. consumer price index (CPI) chart (y/y) 

As a result, even despite the slowdown in inflation on an annualized basis, the monthly figure remains very positive, showing growth after a two-month slowdown.

The US currency reacted very cautiously to this report. The growth of optimism in the stock markets and the resumption of growth on the pound was the factor behind the decline in the dollar index against the basket of competitors. As a result, the dollar index slowed down, but also limited in growth, remaining in the trading range from 97.00-96.80 to 97.50-97.70.

Fig. 2. The US dollar index chart. The current price is 97.10 (10-year government bonds yield is the blue line)

Read also: “Cross-rates Trading Strategies”

Hanzenko Anton

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