top of page
Search

US dollar drops and then rebounds on CPI report. What's next

Writer's picture: Chris TraderChris Trader

The latest US Consumer Price Index (CPI) report closely aligned with anticipated outcomes, with both the core and headline month-over-month (m/m) readings registering at +0.2%, consistent with consensus forecasts. A more detailed examination, however, reveals that both figures were slightly lower at +0.16% and +0.17% respectively, when rounded off. Additionally, the year-over-year measurements fell just short of projected values.


Following the report's release, the immediate market response witnessed a decline in the US dollar, with the USD/JPY currency pair experiencing a 50-pip drop, reaching a session low of 143.31. Comparable albeit modest shifts were observed in other markets as well.

Subsequent to the significant initial movement and subsequent retracement, there seems to be a renewed bout of US dollar selling manifesting across markets beyond the USD/JPY pair, which tends to exhibit a positive correlation with risk sentiment. An illustrative instance of this trend is observed in the AUD/USD pair, which is starting to show incremental upward movement once more.

I concur that the initial swift response was appropriate, and it's plausible that we might revisit certain price levels in due course. Given the limited information provided in the CPI report, the prospect of a September interest rate hike seems improbable, unless an unexpectedly substantial increase in September CPI figures coincides with a robust non-farm payrolls report. Looking ahead, there is substantial rationale to speculate that the Federal Reserve's tightening cycle could be concluded.


Chris

Market Analyst

www.thetradingmentors.com

11 views0 comments

Комментарии


  • Facebook
  • Twitter
  • YouTube
  • Instagram
GOLD TRADING
Forex trading

Marian (London)

The Weekly Market Analysis is great, this helps me to see where the hyper trends are on all markets, thanks to Chris and his team

Gold Trading

Sam (USA)

I joined as a Member and receive the Full Market Analysis everyday, so I can view the video analysis on demand great value. I am now confident when I place my positions to make regular profits.

Bitcoin trading

Paul (South Africa)

After completing the Advanced Pro Charts Course, I finally realised I love sniper trading, along with trading Gold, the Gold Trading Software is fantastic. Thanks Chris for all your continued support.

Best charts for forex
© 2024 All Right Reserved.
The Trading Mentors

Trading foreign currencies can be a challenging and potentially profitable opportunity for investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose. All information is for educational purposes.

bottom of page