US Dollar plummets to 92.60 on downbeat US CPI
|The buck has given away initial gains and is now dragging the US Dollar Index to fresh lows in the 92.60 region after US CPI figures disappointed investors in September.
US Dollar offered on data
The index tumbled further after US inflation figures failed to meet market consensus in September. In fact, consumer prices tracked by the CPI rose at an annualized 2.2% and 0.5%, while prices excluding food and energy costs advanced 0.1% inter-month and 1.7% over the last twelve months.
In addition, headline retail sales expanded below estimates 1.6% MoM, while sales excluding the Autos sector expanded more than previously estimated 1.0% MoM.
The greenback quickly dropped to fresh weekly lows in the vicinity of 92.60 soon after the data, all in tandem with the fall in yields of the US 10-year reference to sub-2.28% levels.
Later in the session, Chicago Fed C.Evans (voter, centrist), Dallas Fed R.Kaplan (voter, dovish) and FOMC’s permanent voter J.Powell (dovish) are all due to speak ahead of the advanced results of the Reuters/Michigan index.
US Dollar relevant levels
As of writing the index is losing 0.29% at 92.67 facing the initial support at 92.59 (low Oct.13) seconded by 91.53 (low Sep.20) and then 91.01 (2017 low Sep.4). On the upside, a breakout of 93.45 (10-day sma) would pave the way for a visit to 94.03 (23.6% Fibo of the 2017 drop) and finally 94.27 (high Oct.6).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.