USD Relatively Muted on Lower-than-Expected US CPI and Core CPI Data

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Written By: Eno Eteng (MSTA)

Oct 10, 2019, 14:11 BST 14:11

Summary:

The USD pairs responded in a muted fashion as the US CI and Core CPI figures came out marginally lower than expected. The US Dollar Index is trading lower.

The USD Index and USD pairs are responding quietly to the release of the US CPI and Core CPI data, which both came out lower than expected. However, the deviations were at baseline point, which has limited the volatility of the pairs.

The US CPI monthly figure came in at 0.0%, which was lower than the 0.1% that analysts had forecasted. Furthermore, the US Core CPI figure came in at 0.1%, a tad lower than the market consensus figure of 0.2%.

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The US Dollar Index daily chart reveals a slowly evolving wedge pattern, with initial support provided at 98.60 (highs of August 1 and early September, acting as support in role reversal).

Below this level, the 98.19 support level comes into focus. A bounce off the 98.60 horizontal support line, where it interacts with the lower border of the wedge, provides an opportunity for a retest of 99.42.

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.