USD Jumps As CPI Consumer Inflation Beats Expectations Again
USD is higher again as CPI inflation comes above expectations, keeping FED rate hike odds up
Yesterday we saw another high reading for the CPI (consumer price index) inflation report. Today markets were in anticipation of the CPI (consumer price index) report, which was released a while ago. Last month we saw a jump in the USD after the better-than-expected CPI inflation number and it kept the bullish momentum for weeks after that.
Today we saw another jump in the USD, as FED hike odds remain high after this. We were long on the USD before the move, and the USD/JPY signal closed in profit after the jump. We decided to open another buy BTC signal as this crypto fell after the inflation report.
US September 2022 Consumer Price Index Inflation Data
- September CPI YoY +8.2% vs +8.1% expected
- August CPI YoY was +8.5%
- September CPI MOM +0.4% vs +0.2% expected and 0.1% prior
Core CPI:
- Core CPI YoY +6.5% vs 6.5% expected and 6.3% prior
- Core CPI MoM +0.6% vs +0.5% expected and +0.6% prior
The Fed funds futures market was pricing in a terminal top at 4.65% in March just ahead of the data and that’s up to 4.84%. The market is now pricing in a 13% chance of 100 bps on Nov 2. There have been some huge moves in markets on these numbers with the dollar soaring. S&P 500 futures went from +40 to -60
USD/JPY Live Chart
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