USD trading on CPI data on Friday has picked up pace! The Consumer Price Index (CPI-U) came in 0.1% higher in December. Let’s chart it up!
Within the last year, the all items index increased 2.1 % before seasonal adjustment. At the same time, the housing index rose 0.4%, which accounted for nearly 80% of the monthly-based all items increase.
The energy index, which climbed dramatically in November, dropped in December as the gasoline index declined.
Separately, the index for all items excluding food and energy rose 0.3% in December, its peak since January 2017.
USD Capturing the Limelight of Upbeat CPI Data
USD hogs the limelight of the upbeat CPI data, trading higher against its major peers.
However, the greenback can’t put up to a strong EUR, now even stronger on a 70% chance of a 10 bps ECB rate hike by the end of 2018 and building on positive German coalition talks. Hence, EURUSD managed to break above 1.19, starting the day on fresh tops at 1.2187 and flirting now with 1.21380.
Adding a few pips against the JPY on positive CPI data, USD gained about 0.2%, with USDJPY reaching an open of 111.640 on Friday. However, this surge proved to be an intraday corrective move bouncing from oversold levels. Currently, USDJPY trades around 111.483.
Despite the reviving buying interest in the USD post CPI data release, GBPUSD reversed its US data-driven retracement slip and jumped up. Following an open at 1.36560, the pair moved even higher, eyeing 1.3700 levels.
By comparison, AUDUSD extended its downturn, opening at 0.78760. Tracking the disappointing Chinese import data released on Friday, AUDUSD trades on the back foot, hovering above 0.78787.
The situation is brighter post CPI data release for the USDCAD! Loonie pips up against its buck peer, with USDCAD reaching an open of 1.2514.