US Core CPI came in at 0.3% m/m, and headline CPI m/m came in at 0.1%.
If the data had surprised to the upside by a deviation of at least 0.2%, then it would have likely provided some relief for the US dollar, and it could recover some of yesterday’s losses.
However, the 0.2% deviation threshold was not met, and so this is considered an untradeable news release.
The EUR/USD, USD/JPY, and GBP/USD are in a choppy trading pattern right now. Traders are advised to stay off trades until the market settles.
Possible trades: Sell USDJPY when it rallies to around 108.40 – 108.45. Stop loss can be set at 108.70. Take Profit at 107.90.
Going forward, concerned that a dimming global economic outlook will constitute a potential downside risk to the US economy, US Fed Chairman Jerome Powell’s speech delivered to the US Congress on June 10 has given the markets significant reason to believe that there will be at least two rate cuts in 2019. But US inflation would have to be a significant consideration in the Fed deciding the severity and number of interest rate cuts to be made in 2019 and beyond.Don’t miss a beat! Follow us on Twitter.
Download our Q3 market outlook today for our longer-term outlook for the markets and trade ideas.
Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.