US October CPI Overview
Wednesday's US economic docket highlights the release of the latest consumer inflation figures, due later during the early North-American session at 13:30GMT. The headline CPI is anticipated to have edged higher by 0.2% MoM in October as compared to a flat reading in the previous month, while the yearly rate is expected to hold steady at 1.7%. Meanwhile, core CPI - excluding food and energy costs - is predicted to have increased by 0.2% MoM rate as against 0.1% rise in September and the annual core inflation is seen holding steady at 2.4%.
How could it affect EUR/USD?
Given that the Fed Chair Jerome Powell is scheduled to testify before the Joint Economic Committee later during the US session on Wednesday, barring any knee-jerk reaction, the data seems likely to provide any meaningful impetus to the EUR/USD pair.
Meanwhile, Yohay Elam, FXStreet's own analyst provided some important technical levels to trade the major: “Below 1.10, the next significant support line is only at 1.0940, which provided support in early October. It is followed by 1.0905, which was a swing low in late September, and finally by the 2019 trough of 1.0879.”
“Some resistance awaits at 1.1035, a stepping stone on the way down, and 1.1055, which capped it last week. Next, we find 1.1090, a double top, and 1.1110,” he added further.
Key Notes
• US CPI Preview: Inflation remains secondary to Fed policy
• US CPI Preview: Banks expecting inflation to continue to firm
• EUR/USD Technical Analysis: a break below 1.10 remains well on the cards
About the US CPI
The Consumer Price Index released by the US Bureau of Labor Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchasing power of USD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or Bearish).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.