US Dollar plummets to 92.60 on downbeat US CPI

Pablo Piovano FXStreet

The buck has given away initial gains and is now dragging the US Dollar Index to fresh lows in the 92.60 region after US CPI figures disappointed investors in September.

US Dollar offered on data

The index tumbled further after US inflation figures failed to meet market consensus in September. In fact, consumer prices tracked by the CPI rose at an annualized 2.2% and 0.5%, while prices excluding food and energy costs advanced 0.1% inter-month and 1.7% over the last twelve months.

In addition, headline retail sales expanded below estimates 1.6% MoM, while sales excluding the Autos sector expanded more than previously estimated 1.0% MoM.

The greenback quickly dropped to fresh weekly lows in the vicinity of 92.60 soon after the data, all in tandem with the fall in yields of the US 10-year reference to sub-2.28% levels.

Later in the session, Chicago Fed C.Evans (voter, centrist), Dallas Fed R.Kaplan (voter, dovish) and FOMC’s permanent voter J.Powell (dovish) are all due to speak ahead of the advanced results of the Reuters/Michigan index.

US Dollar relevant levels

As of writing the index is losing 0.29% at 92.67 facing the initial support at 92.59 (low Oct.13) seconded by 91.53 (low Sep.20) and then 91.01 (2017 low Sep.4). On the upside, a breakout of 93.45 (10-day sma) would pave the way for a visit to 94.03 (23.6% Fibo of the 2017 drop) and finally 94.27 (high Oct.6).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.