No surprises from what the Fed cares about: core inflation rose 0.2% m/m and 1.9%, exactly as expected. Headline inflation rose 0.2% m/m and also 0.2% y/y. The latter is an upside surprise.
The US dollar is slightly stronger.
The United States was expected to see core inflation rising 1.9% y/y in October, just like in September. Headline CPI carried expectations for +0.1% after 0% beforehand. On a monthly basis, both indicators carried expectations for +0.2%.
The US dollar looked relatively strong towards the publication.
- EUR/USD traded at 1.0670 after more dovish ECB hints. The pair slips below 1.0660 after the release.
- GBP/USD was at 1.5212 after a rise in core inflation. Cable is struggling with 1.52.
- USD/JPY was at 123.20, shy of the 123.60 resistance level. The pair rises 10 pips.
- USD/CAD traded around 1.3309 as oil prices staged a minimal recovery. No big changes are registered here.
- AUD/USD was around 0.7130 after upbeat meeting minutes from the RBA. The Aussie slides a few pips.
- NZD/USD traded around 0.6483. It is a few pips lower.
Later we have industrial output and capacity utilization rate. More importantly, tomorrow’s FOMC Meeting Minutes will play a big role in shaping expectations.
— more coming
