U.S. Inflation Data

• Core Consumer Price Index (CPI) (m/m) (May), fact 0.1%, forecast 0.2%.
• Core Consumer Price Index (CPI) (y/y) (May), fact 2.0%, forecast 2.1%.
• Consumer Price Index (CPI) (m/m) (May), fact 0.1%, forecast 0.1%.

The consumer price index (CPI) in the United States slowed down in May, which reinforced market concerns about a slowdown in US inflation and lower US Fed rates. The key US inflation rate continued to slow down at an annual rate and fell to its lowest levels since April 2018. Thus, it increased the likelihood of rates cut at upcoming meetings of the US Federal Reserve.

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

Weak inflation data in the United States increased the likelihood of lower rates in the United States and put pressure on the US currency. The US dollar index has accelerated the decline, but remains limited oversold and market restraint. Resistance levels: 96.80 and 97.00, support: 96.50 and 96.30.

Fig. 2. The US dollar index chart. The current price is 97.70 (10-year US government bonds yield is the blue line)

Read also: “Fundamental analysis:
interest rate and its impact on the exchange rate “

Hanzenko Anton

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