US Inflation Falls to 7.7% from 8.2%. What’s ahead for the Fed and the US Dollar?

[MongiIG]

 

INFLATION DATA KEY POINTS:

• October U.S. inflation rises 0.4% on a monthly basis and 7.7% compared to one year ago. Analysts were expecting the headline print to clock in at 0.6% m-o-m and 8.0% y-o-y.
• Core CPI advances 0.3% on a seasonally adjusted basis, bringing the annual rate to 6.3%, two-tenth of a percent below expectations
• Weakening inflationary pressures may prompt the Fed to slow the pace of interest rate increases

 

U.S. inflation remained high last month but showed tentative signs of moderation, according to a report released this morning by the Bureau of Labor Statistics, a sign that the Federal Reserve is making some progress in the fight to restore price stability after launching the most aggressive tightening campaign since the 1980s.

The latest batch of data published this morning showed the consumer price index, which measures what Americans pay for a representative basket of goods and services, climbed 0.4% on a seasonally adjusted basis, bringing the annual rate down to 7.7% from 8.2% in September. Economists surveyed by Bloomberg had expected the headline print to clock in at 0.6% month-over-month and 8.0% year-over-year.

OCTOBER INFLATION DATA

 

Source: DailyFX Economic Calendar

 

 

Written by Diego Colman, Market Strategist for DailyFX

[MongiIG]

USD Slammed, Gold and EURUSD Jump After CPI

Nov 10, 2022 | DailyFX
James Stanley, Senior Strategist

USD, GOLD, EUR/USD TALKING POINTS:

• This morning brought the release of CPI data out of the US for the month of October.
• The data came in well-below expectations, with Core CPI coming in at 6.3% against an expectation of 6.5% and headline CPI printing at 7.7% versus an 8.2% expectation.
• This has led to a massive move already, with an instant fall in the US Dollar that helped to push EUR/USD back-above parity. Equities have put in a major move ahead of the US open after falling down to key supports yesterday.

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