EUR/USD retreats below 1.1550 after US inflation data
- EUR/USD pair lost its traction in the early American session.
- Annual CPI in US edged higher to 5.4% in September.
- US Dollar Index is staging a modest rebound after inflation report.
After rising to a fresh daily high of 1.1567 during the European trading hours, the EUR/USD pair came under renewed bearish pressure and was last seen trading at 1.1544, where it was down 0.15% on a daily basis.
Price pressures in US remain intact
The positive impact of the September US inflation report's on the greenback seems to be weighing on EUR/USD in the early American session.
The US Bureau of Labor Statistics announced on Wednesday that the Consumer Price Index (CPI) rose to 5.4% on a yearly basis from 5.3% in August. This reading came in slightly higher than the market consensus of 5.3%. Moreover, the annual Core CPI stayed unchanged at 4% as expected.
At the moment, the US Dollar Index, which touched a session low of 94.24, is down only 0.1% on the day at 94.42. Later in the session, the FOMC's September Meeting Minutes will be looked upon for fresh impetus.
FOMC Minutes Preview: Fed to reiterate taper message, sending the dollar up, stocks down.
Meanwhile, US stock index futures stay afloat in the positive territory, suggesting that the CPI is having little to effect on risk sentiment.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
