U.S. Inflation Data

• Core Consumer Price Index (CPI) (m/m) (Feb), fact 0.1%, forecast 0.2%.
• Core Consumer Price Index (CPI) (y/y) (Feb), fact 2.1%, forecast 2.2%.
• Consumer Price Index (CPI) (m/m) (Feb), fact 0.2%, forecast 0.2%.

U.S. inflation data for February slowed down unexpectedly, and it renewed the pressure on the US currency. But it is worth noting that the indicators for the consumer price index for February in the United States remain within the semi-annual dynamics. At the same time, the published data for February correspond to the target level of this indicator, not to mention the restrained dynamics of this indicator.

Fig. 1. Chart of the US core consumer price index (CPI) (y) 

The US dollar index reacted very negatively to this statistic, which strengthened the dollar correction after growth, causing increased volatility in the market, which remains at a fairly high level. The US dollar index returned to the level of the opening of the day near the level of 97.00. At the same time, a high of 97.20 was updated, indicating an attempts of growth. In conditions of maintaining high volatility, multidirectional fluctuations are possible. The overall dynamics of the American dollar is still restrained ascending.

Fig. 2. The US dollar index chart. The current price is 97.00 (10-year government bonds yield is the blue line)

Read also: “The state of the Canadian economy and the perspective of an increasing the interest rate by the Bank of Canada”

Hanzenko Anton

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