Breaking: US Core CPI misses, only 2.0% y/y, EUR/USD leaps

The US consumer price index missed with a rise of only 2.0% year on year on Core CPI and 0.1% on a monthly basis in May. Headline inflation rose by only 1.8% YoY, also below expectations while advancing by 0.1% m/m.

The US dollar has dropped on the news with EUR/USD rising toward the highs. The pair has emerged from the lows close to 1.1300 and nears the 11-week high of 1.1348 seen on Friday.

Here is how the move looks on the 15-minute chart:

EUR USD technical chart post US CPI June 12 2019

The FXStreet Surprise Index has foreseen a downside surprise in inflation

Average hourly earnings – also part of the report – have accelerated from 1.2% to 1.3% in May. Weekly earnings are up from 0.9% to 1%. Last week's Non-Farm Payrolls report showed a deceleration in wage growth and a weaker than expected gain of jobs, only 75K. 

The Federal Reserve will announce its decision in one week and the disappointing data increases the chances of a more dovish decision – signaling rate cuts later this year. 

-- more to come

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD: Bulls in control above 1.1100 starting out ECB week

Following the bounce from near 1.1100 in early Asia, EUR/USD has entered a phase of consolidated near 1.1140 region ahead of the European open. Bulls await a fresh impetus for the next push above the 1.1150 mark ahead of Eurozone/ US PMIs.


GBP/USD recedes from three-week top above 1.2400, UK Manufacturing PMI eyed

GBP/USD prints three-day winning streak amid broad US dollar weakness. Calls of further help to British employees add to the upside momentum. Downbeat Brexit headlines confront the UK’s coronavirus optimism. The UK/US PMIs will join qualitative catalysts.


Trump tenderness, China's Caixin, boost Asia

Asia is off to a rollicking start to the week with equities performing strongly and currency markets rotating out of haven US Dollars. The turbocharging of bullish sentiment this morning has multiple drivers starting with President Donald Trump. 

Read more

Gold: Teasing a rectangle breakout, $1750 in sight

Gold bulls gathering pace for the next push higher. The extension of last week’s rally in the yellow metal is mainly driven by the sell-off in the US dollar across the board, in the wake of US-China trade war relief and escalating US riots.

Gold News

WTI: Overbought RSI challenges the bulls above $35.50

WTI seesaws around 7-week-old resistance line, retreats from highest since March 11. A short-term ascending trend line on the bears’ radars during the pullback. 100-day SMA, 61.8% Fibonacci retracement together offers strong upside barrier.

Oil News