US September CPI was flat, and the core was up 0.1%, both a little shy of estimates, following unrevised gains of 0.1% and 0.3%, respectively. The 12-month headline and core rates were steady at 1.7% y/y and 2.4% y/y, with the latter holding above the Fed’s 2% target (though the PCE is the favoured indicator). Energy costs were down -1.4% following the 1.9% prior slide, with gasoline off -2.4%. Used car prices dropped 1.6%. Food prices dipped 0.1% and apparel fell -0.4%. Pressure on prices remains elusive.

Meanwhile, US initial jobless claims dropped 10k to 210k in the week ended October 5, surprising forecasts for a rise, after increasing 5k to 220k previously (revised from 219k). That’s stronger than expected despite the UAW strike in its 4th week. The 4-week moving average edged up to 213.75k from 212.75k (revised from 212.5k). Continuing claims climbed 29k to 1,684k in the September 28 week after slipping 1k to 1,655k (revised from 1,651k).

Initial reaction from the Dollar was a dip after the cooler CPI outcome, seeing USDJPY slip briefly to 107.37 from near 107.50, and EURUSD trade over 1.1030 from under 1.1025. USDJPY has since recovered to test 107.60 but is capped at R1 and 107.75 with support at S1 and 107.00 ahead of Day One of the latest round of high level US-China trade talks, which has all eyes on Washington DC.


Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD rebounds after dismal US PMIs

EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates. 


GBP/USD advances to 1.2950 after US data

GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates. 


Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Consolidation process underway

The Crypto board continues to be immersed in an emotional leg-breaking, consistently punishing the emotional state of the traders with its continuous changes of direction.

Read more

XAU/USD unstoppable, breaks to fresh 2020 highs, approaching $1650/oz

XAU/USD is trading in an uptrend above its main daily simple moving averages (SMAs) while breaking above a bull channel. Gold is printing fresh 2020 highs hitting $1646.64 per ounce on an intraday basis.  

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors