Below-Forecast U.S. CPI, Retail Sales to Fuel EUR/USD Rate Rally

U.S. Consumer Price Index (CPI) to Slow to Annualized 2.1% from 2.2% in November.

Core Inflation to Hold Steady during 1.7% per Annum, Retail Sales to Increase 0.5% .

Trading a News: U.S. Consumer Price Index (CPI)


Fresh developments entrance out of a U.S. economy competence fuel a near-term convene in EUR/USD as a Consumer Price Index (CPI) is projected to delayed in December, while Retail Sales are approaching to boost 0.5% following a 0.8% arise in November.

A set of muted information prints is expected drag on a U.S. dollar as it curbs bets for an approaching rate-hike, and a Federal Open Market Committee (FOMC) competence mostly validate a wait-and-see proceed during a subsequent rate preference on Jan 31 as acceleration continues to run subsequent a 2% target.

Signs of resigned cost expansion competence also hint a flourishing gainsay within a executive bank as ‘some participants celebrated that there was a probability that acceleration competence stay subsequent a design for longer than they now expected,’ with a FOMC using a risk of completing a hiking-cycle forward of news generally as ‘other determined factors competence be holding down inflation, that would benefaction hurdles for a Committee in compelling a lapse of acceleration to 2 percent over a middle term.’

Nevertheless, a set of certain U.S. information prints competence tame a new pickup in EUR/USD, with a span still during risk of figure a double-top arrangement amid a unsuccessful try to transparent a September-high (1.2092). New to trading? Review a ‘Traits of a Successful Trader’ array on how to effectively use precedence along with other best practices that any merchant can follow.

Impact that the U.S. CPI has had on EUR/USD during a previous release

November 2017 U.S. Consumer Price Index (CPI)

EUR/USD 5-Minute Chart


The U.S. Consumer Price Index (CPI) climbed to an annualized 2.2% from 2.0% in October, while a core rate of acceleration suddenly slipped to 1.7% from 1.8% during a same duration to symbol a initial slack given May. A deeper demeanour during a news showed a 3.9% arise in Energy prices, with travel costs also climbing 1.9%, while prices for Apparel fell 1.3% in November.

The churned minute surrounding a acceleration news dragged on a U.S. Dollar, with EUR/USD climbing above a 1.1750 segment to finish a day during 1.1826. For additional resources, download and review a FREE DailyFX Advanced Guide for Trading a News to learn a 8 step strategy.

EUR/USD Daily Chart

EUR/USD Daily Chart

Want more insight? Join DailyFX Currency Analyst David Song LIVEto cover a marketplace greeting to a U.S. CPI Retail Sales report.

  • EUR/USD appears to be creation another try to exam a September-high (1.2092) as it snaps a array of reduce highs lows from progressing this week, with both cost and a Relative Strength Index (RSI) on march to extend a bullish formations carried over from late-2017.
  • Break above a September-high (1.2092) would annul a hazard for a double-top, with a subsequent topside jump entrance in around 1.2130 (50% retracement) followed by a 1.2230 (50% retracement) region.
  • May see EUR/USD theatre a some-more suggestive allege if a RSI pushes into overbought domain as it suggests a bullish movement is entertainment pace.

— Written by David Song, Currency Analyst

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