U.S. inflation data

• Core Consumer Price Index (CPI) (y/y) (Aug), fact 2.4%, forecast 2.3%.
• Core Consumer Price Index (CPI) (m/m) (Aug), fact 0.3%, forecast 0.2%.
• Consumer Price Index (CPI) (m/m) (Aug), actual 0.1%, forecast 0.1%.
• Initial jobless claims, fact 204K, forecast 215K.

Data on consumer inflation in the US in August accelerated more significantly than expected. As a result, core consumer price index in the USA has been growing for the third consecutive month, peaking since September 2008.

Fig. 1. Core consumer price index (CPI) (m m) in the USA

As a result, the US dollar accelerated the growth against a basket of competitors, especially against the euro, which was under the pressure from the ECB meeting results. But it is also worth to note the growth of the American dollar against commodity currencies, which may continue.

The US dollar index updated the weekly high, breaking the level of 99.00 on the weakness of the euro and the US inflation data. Zone 99.00-20 remains a significant resistance and limits the strengthening of the American dollar overbought. It is also worth noting a decrease in the US government bonds yield, which indicate an increase in pessimistic sentiment in the market.

Fig. 2. The US dollar index chart. Current price – 99.00 (10-year US government bonds yield – blue line)

Read also: “Political risks in the UK
increase the chances of Brexit without a deal”

Hanzenko Anton

---

 

Earn with the help of the trade service on the news Erste News!

Topical articles of the trader’s blog:

1. Oil market: does it form a reversal or maintain lateral dynamics
2. The British pound is growing on Johnson’s failures
3. Boris Johnson leads the UK to a tough Brexit

Current Investment ideas:

1. Selling Alcoa shares makes a profit! Three reasons to connect now!
2. Technology giant Microsoft is getting ready to storm new highs! Let’s make money on it!
3. Buy Citigroup Inc. shares now and make a profit in early October!