Gunted Dolls Looking For US CPI Reports
Seputarforex.com - The US dollar is moving down in the trading session Friday (13 / Oct) this afternoon as US Treasury bond yields are still near low levels, awaiting US inflation reports later tonight. The dollar index, which measures the strength of the US dollar against major currencies, climbed 0.06 percent to 93,074.
"The weekly index of the dollar this week is due to the correction to the bigger moves that have been formed in September," said Marc Chandler, Chief Forex Expert at Brown Brothers Harriman, quoted from Businesstimes. "In essence, the dollar index is corrective as the market waits for new signals."
USD / JPY was downplayed today to 112,120, and was on a bearish path of 0.3 percent this week. Greenback is often preferred as risk appetite by investors, compared to Yen. However, the US Dollar response to the Nikkei's rise to the 21-year high of this week seems to be limited.
EUR / USD rose 0.15 percent to 1.1848 and then slipped slightly as the news was written, leading to the range of 1.1831. Throughout the week, the pair has accumulated an increase of 1 percent, especially after concerns about Catalonia eased.
Expect Slower US Inflation Slowdown
Traders are currently focusing on US CPI data to be published tonight. FOMC's inauguration yesterday highlighted the slowdown in US inflation. Even some Fed officials suggest to be a little more patient in raising interest rates, to ensure that the current slowdown in inflation is temporary.
The Fed has raised its interest rate twice this year. The CME Group's FedWatch tool installs the percentage of possible The Fed interest rate increases in December of 88 percent.
"The US PPI (which was reported last night) has shown inflation signals, at least in the producer level, and then we will see CPI data," said Bill Northey, Head of Investment at U.S. Bank Wealth Management, quoted by Reuters.
"There are a number of emerging signals, indicating that there is pressure in inflation formation, but with regard to the points in the data, we must admit that this would be a fairly noisy data set," Northey added referring to the impact of the Harvey and Irma storms hit the US.
http://www.seputarforex.com/dolar-gugup-menantikan-laporan-cpi-as-280575-11