US Dollar plummets to 95.50 on US CPI
By FXStreet FXStreet (Edinburgh) – Poor results from the US docket today have prompted USD-sellers to step in and drag US Dollar Index back to the mid-95.00s, surrendering initial gains.
US Dollar weaker on US data
The index has turned negative for the day following the less auspicious results from the US inflation figures during last month. In fact, headline CPI contracted at a monthly pace of 0.1%, the first negative reading in the last seven months; in addition, prices rose at an annual pace of 0.2% while the Core print stayed at 1.8%, below consensus at 1.9%.
The greenback keeps suffering today’s results as market hopes of a rate hike at the Fed meeting tomorrow keep losing traction. Market expectations of a Fed’s lift-off have been dwindling in the last weeks, although today’s weak CPI releases might have definitely ruled it out.
US Dollar levels to consider
At the moment the index is losing 0.12% at 95.49 facing the next support at 93.72 (low Aug.26) ahead of 93.25 (low Aug.25) and finally 92.59 (low Aug.24). On the flip side, a break above 95.61 (high Sep.16) would expose 96.53 (high Sep.4) ahead of 97.07 (high Aug.19).
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Source:: FX Street
