The US dollar is firmer on the hawkish sentiment surrounding the Fed’s intentions concerning interest rate policy at next Wednesday’s meeting.
The EUR/USD pair has printed a fresh low in midday US session near 0.9973 and fell from 1.0187 high on the day following the US inflation data. At the time of writing, the price is trading near 1.4% down on the day with eyes on the 0.9950s.
Consumer prices beat expectations according to the Labour Department report, underlying inflation picked up amid rising costs for rents and healthcare. The core index significantly exceeded expectations as well, on the back of unrelenting shelter price inflation, rising at a robust 0.6% MoM. The YoY change in headline CPI fell to a four-month low of 8.3%, but prices in the core index accelerated to a five-month high of 6.3% YoY.
August CPI data does support a continued aggressive effort by the Fed to restrict its inflation-adjusted policy stance.
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