US CPI March Preview: Falling prices does not wear down the dollar


Consumer inflation is set to take its biggest monthly dip in three years hit by the dual pressures of cascading global oil prices and lower consumption from extensive US layoffs, FXStreet’s analyst Joseph Trevisani informs.

Key quotes

“The overall price index is forecast to drop 0.3% in March, the first decline since -0.1% in March 2018.”  

“The annual change should fall to 1.6% from 2.3% in February for the largest one month decrease since December 2014 when -0.1% followed November’s 0.8%.”

“Underlying inflation is predicted to edge lower to 0.1% on the month.  The annual rate will slip to 2.3% from 2.4% in the year.”  

“Falling prices will serve to confirm the economic ravages of the pandemic but it cannot elicit new policies or impact the dollar’s reserve and safety status.”

 

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

AUD/USD: Stellar performance refreshes 18-week top above 0.6800, RBA eyed

Having dominated the markets at the week’s start, AUD/USD bulls keep the reins around 0.6810, high of 0.6814, at the beginning of Tuesday’s Asian session. RBA is widely anticipated to keep the current monetary policy unchanged.

AUD/USD News

USD/JPY looks for a firm direction above 107.00 with eyes on US civil unrest

USD/JPY fails to extend the previous day’s losses amid fresh challenges to risk. The yen pair dropped the previous day amid broad US dollar weakness. A lack of data from Japan keeps traders focused on the geopolitical issues for fresh impulse.

USD/JPY News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Pointing beyond the Moon

XRP remains on the sidelines, although it could join the bullish run. The crypto market is starting to remind us of times gone by, with dazzling rises across the crypto board that draw the public's attention.

Read more

Gold struggles to hold above $1,740, looks to post modest daily gains

The XAU/USD pair started the week with a bullish gap and rose above $1,740 during the Asian trading hours before losing its traction. After dropping toward $1,730, however, the pair capitalized on the broad-based USD weakness during the American trading hours and now looks to close in the positive territory. 

Gold News

WTI trading near session’s lows around $34.80 a barrel

Crude oil is trading near session’s lows as WTI is trading above the main SMAs on the four-hour chart. However, as the black gold remains fragile in a dominant downtrend, it remains to be seen if WTI can regain the 36.00 resistance. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures