Silver Jumps As Market Relax, After US Inflation Remains in Reasonable Range - Forex News by FX Leaders
Silver is now bullish after the jump

Silver Jumps As Market Relax, After US Inflation Remains in Reasonable Range

Posted Tuesday, April 13, 2021 by
Skerdian Meta • 1 min read

Inflation has been increasing in the last few months of 2020 and so far in 2021, as crude Oil prices continued the bullish trend of last year. In the US in particular, inflation has also been affected positively by the expansion of the service sector. That has been one of the reasons for the USD to stop last year’s downtrend and turn bullish this year.

Traders were fearing this month’s CPI (consumer price index) report, expecting another surge. Inflation did increase, but it wan’t too extraordinary, which sent the USD down in a releaf move and the Silver jumping higher, after finding support at the 50 SMA (yellow) on the H4 chart.

March 2021 US CPI Inflation Report

  • March CPI YoY +2.6% vs +2.5% expected
  • February CPI was +1.7%
  • Core CPI MoM, ex. food and energy +1.6% vs +1.5% expected
  • February core PCI was +1.3%
  • CPI MoM +0.6% vs +0.5% expected (highest monthly reading since 2012)
  • February core CPI was +0.4%
  • Core CPI MoM ex. food and energy +0.3% vs +0.2% expected

US CPI chart

Earnings/Wages Report:

  • Real average hourly earnings YoY +1.5% vs +3.4% prior
  • Real average weekly earnings YoY +3.9% vs +4.1% prior

This is the sort of number that leads an inflation-skittish market to breathe a sigh of relief. Yes, it’s a tick higher than expected but it’s lower than feared and isn’t the kind of number to bother the FED. The US dollar was unmoved on the release at first, but turned lower later.

Drilling into the details, half the headline rise in March was due to gasoline. The core rise reflected higher rent and auto insurance premiums. Besides that, wages cooled off last month, so both played a role in sending the USD down. Although, inflation is higher undeniably.
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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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