U.S. CPI revealed a strong 0.3% gain in December


The dollar moved higher after the mix of data, where retail sales were about in-line, and CPI was a touch warmer on a core basis. EURUSD dipped 20 points to 1.2148. The USDJPY popped from under 111.20 to near 111.68, retesting the immediate resistance at 111.73. However the hourly candle closed below this resistance area,  suggesting that this push higher has faded, and that the downwards momentum still holds for the day. therefore any lack of the pair to break the R1, would suggest a retest of the intra-day Support at 110.90.

U.S. December retail sales increased 0.4% for the headline and ex-autoS, while U.S. CPI edged up 0.1% in December, with the core up 0.3%. Prior data are not revised, leaving the November headline rising 0.4% and the ex-food and energy component up 0.1%. The 12-month rate slowed to 2.1% y/y versus 2.2% y/y, but the core accelerated a bit to 1.8% y/y versus 1.7% y/y. Energy prices declined 1.2% versus the 3.9% bounce. Transportation costs dipped 0.2% from 1.9%. Services prices increased 0.3% from 0.2%. Housing costs, including owners’ equivalent rent, were up 0.3%. Foods/beverage prices were up 0.1% after an unchanged November print. Apparel remained soft and slid 0.5% after falling 1.3% previously and is now down for four straight months. Tobacco dropped 0.6% from 0.2%. Commodities prices were 0.1% lower versus the prior 0.7% gain. The strength in core prices is likely to weigh on Treasuries.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Andria Pichidi

Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.