The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
American consumer prices speed down as gasoline dives
In February, American consumer price surge speeded down in the face of a dive in gasoline prices as well as a decline in the cost of rental accommodation, which appears to be the latest sign that an expected pickup in inflation will most like be only gradual.
On Tuesday, the Labor Department told that its Consumer Price Index rallied 0.2% the previous month having soared 0.5% in January. The CPI tacked on 2.2% for the 12 months through February because the poor outcome from 2017 sank from the calculation.
Without the volatile food as well as energy components, the CPI managed to grow 0.2% having speeded up 0.3% in January. The year-on-year rally in the so-called core CPI didn’t change, keeping to 1.8% in February.
The previous month’s leap in consumer prices turned to be in line with experts’ expectations. The US major financial institution tracks the personal consumption expenditures price index without energy and food that has consistently undershot the major bank’s 2% objective since mid-2012.
The CPI report emerged on the heels of last Friday’s data demonstrating a deceleration in wage ascend in February and also downward update to January's jump in average hourly earnings. Additionally, in February, average hourly earnings tacked on 2.6% on an annual basis, speeding down from January's 2.8% jump.
The evergreen buck pared revenues versus the Japanese and extended losses versus the common currency. As for prices for American Treasuries, they headed north, while American stock index futures inched up.
The jobless rate’s currently demonstrating a 17-year minimum of 4.1% and market experts expect it to sink to 3.5% by the end of 2018. A weakening greenback as well as fiscal stimulus in the form of a $1.5 trillion tax trim package along with ramped up government spending – all of them have been also caught driving inflation.
Happy Monday, dear traders! Hope you had a great weekend and you’re ready for the last trading week in 2022! Later this week we’ll announce some exciting news for you, but now let’s look through some interesting news! Today’s events: USA, UK, Hong…
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…