Breaking: US annual CPI inflation edges lower to 5.3% in August as expected

FXStreet Team FXStreet

Inflation in the US, as measured by the Consumer Price Index (CPI), edged lower to 5.3% on a yearly basis in August from 5.4% in July, the data published by the US Bureau of Labor Statistics revealed on Tuesday. This reading matched the market expectation. On a monthly basis, the CPI arrived at 0.3%.

More importantly, the Core CPI, which excludes volatile food and energy prices, declined to 4% from 4.3%, compared to analysts' estimate of 4.2%.

Market reaction

With the initial reaction, the greenback came under renewed bearish pressure. As of writing, the US Dollar Index was down 0.2% on the day at 92.43.

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD falters ahead 1.3400

GBP/USD has advanced just past the 1.3400 barrier before losing some momentum on Tuesday. Cable has since edged lower to trade around 1.3380 as investors turned more cautious following reports that Iran had targeted commercial vessels attempting to transit the Strait of Hormuz.

EUR/USD treads water near 1.1440

EUR/USD struggles to gather bullish momentum on Tuesday, trading in a tight range around 1.1400. The pair lacks clear direction amid the equally vacillating price action in the US Dollar, all against the backdrop of renewed tensions in the Strait of Hormuz and a sell-off in Asian technology stocks.

Gold picks up pace, retargets $4,200

Gold bounces off earlier lows and hovers around the $4,180 region per troy ounce on Tuesday. Fresh geopolitical effervescence lend support to inflation concerns and seem to limit the yellow metal’s bull run for now.

Bitcoin: BTC struggles despite renewed ETF inflows as Strategy sale impact fades

Bitcoin (BTC) falls below $64,000 on Tuesday, erasing part of the recent gains following six consecutive days of price rises. Institutional demand shows signs of recovery, with spot ETFs recording a second day of inflows through Monday after weeks of outflows.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance, arguing that the current world demands more flexibility.