US annual CPI inflation declines to 7.7% in October

The US Bureau of Labor Statistics reported on Thursday that inflation in the US, as measured by the Consumer Price Index (CPI), declined to 7.7% on a yearly basis in October from 8% in September. This reading came in below the market forecast of 8%.

The Core CPI, which excludes volatile food and energy prices, fell to 6.3% from 6.6% on a yearly basis, compared to analysts’ expectations of 6.5%.

On a monthly basis, the CPI and the Core CPI arrived at 0.4% and 0.3% respectively, with both of these readings falling short of experts’ projections.

EURUSD saw its downside abruptly reversed and quickly climbed to the 1.0160 region in the wake of the release of US inflation figures.

EURUSD regains upside traction on the back of the collapse in the dollar after US inflation figures rose less than estimated in October. Indeed, inflation measured by the headline CPI rose 0.4% MoM in October and 7.7% over the last twelve months. Additionally, the Core CPI advanced 6.3% from a year earlier, also below initial expectations.

The USDJPY lost almost 300 pips in a few minutes following the release of US inflation data. The pair dropped from above 146.00 to as low as 143.14, reaching the lowest level since September 23.