The USD Index and USD pairs are responding quietly to the release of the US CPI and Core CPI data, which both came out lower than expected. However, the deviations were at baseline point, which has limited the volatility of the pairs.
The US CPI monthly figure came in at 0.0%, which was lower than the 0.1% that analysts had forecasted. Furthermore, the US Core CPI figure came in at 0.1%, a tad lower than the market consensus figure of 0.2%.
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[vc_single_image image=”14654″ img_size=”medium” alignment=”center” style=”vc_box_rounded” onclick=”custom_link” img_link_target=”_blank” link=”https://www.investingcube.com/q4-global-market-outlook-eurusd-gold-crude-oil-bitcoin-sp-500/”]The USD continues to trade in a muted manner as most of the market attention seems to be focused on the US-China trade headlines. Presently, the US Dollar Index is trading lower by 0.4% on the day in a lackluster response to the US CPI news release.
The US Dollar Index daily chart reveals a slowly evolving wedge pattern, with initial support provided at 98.60 (highs of August 1 and early September, acting as support in role reversal).
Below this level, the 98.19 support level comes into focus. A bounce off the 98.60 horizontal support line, where it interacts with the lower border of the wedge, provides an opportunity for a retest of 99.42.