Dollar ticks higher ahead of US inflation data

The greenback traded higher today against all major peers, pushing the EURUSD pair below the 1.16 level, while the USDJPY pair managed to climb above 113 again.
Later in the day, the US CPI for October is due, and market participants expect inflation to stall at 5.3% using this measure, while the core inflation will likely stay unchanged at 4.0%. 

Additionally, Thursday's jobless claims will be released today because of bank holiday tomorrow.

On Tuesday, US data showed that the producer price inflation (PPI) came in at 8.6% and the core rate at 6.8%, nearly twice as high as at any time in the last ten years, and more than three times the Fed's 2% inflation goal.

The US 10-year yield fell below its 200-day moving average yesterday, and it looks like the medium-term uptrend in yields might be over if the yield does not climb above 1.5% quickly. 

From other news, oil rose sharply Tuesday and returned to its cycle highs near 85 USD, after API reported an unexpected 2.5 million barrel crude draw during the prior week.

US equities corrected lower yesterday amid their overbought conditions, but the medium-term uptrend remains intact, with a possible short-term drop.
Show More Articles
Axiory uses cookies to improve your browsing experience. You can click Accept or continue browsing to consent to cookies usage. Please read our Cookie Policy to learn more.