Today has been a negative day for economic data. There were quite a few economic releases scheduled for today, most of which missed the expectations.
It started with the Japanese household spending and retail sales which slipped lower from last month, then we had some mixed numbers from the Eurozone and a terrible miss in the UK yearly GDP figures.
The afternoon reserved more bad news, this time from the US. The Canadian monthly GDP came out flat, while the US core price index fell to 1-3% from 1.4% previously.
The Canadian GDP takes a dovish turn
Inflation has been a headache for the FED, but they sounded sort of hawkish in the last meeting/statement and rate hike odds for December surged. Although, today’s inflation numbers will make them think it over.
That’s what the market is worried about and it dropped the USD immediately after the release. At least, the decline has stopped now. We’re still long on USD/JPY, so that forex signal is safe for the time being.
Also, remember that today is the last trading day of the month and the month-end cash flows are a factor in the price action, so try to trade safe fellas.