US prices continue rising at a stable rate. CPI rose by 03% as expected and Core CPI edged up by 0.1%, a bit less than 0.2% that was expected. Building permits dropped to 594K but on the other hand, housing starts jumped to 658K, which was a relatively big surprise in comparison to the other figures. All in all, the figures are OK.
The result is a small rise in EUR/USD and a small rise in USD/JPY, classic risk appetite trading. It’s important to note that even when US indicators post big surprises, the market’s focus remains on the European debt crisis.
Contrary to the big jump in PPI seen yesterday, these consumer indicators don’t change the picture for the Federal Reserve.
US Consumer Price Index was expected to rise by 0.3%, lower than last month;s 0.4% rise. Core CPI was expected to rise by 0.2% like last month.
US Building permits were predicted to ease from 630K to 610K and housing starts were expected to tick up from 570K to 590K.
For more about euro/dollar, see the EUR/USD forecast.
