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18 Jun 2013
US CPI next: Impact on USD
FXstreet.com (Córdoba) - The US Bureau of Labor Statistics will publish the Consumer Price Index for May at 12:30GMT, an important indicator for the Fed at this point, as inflation pressures could encourage the QE tapering process.
"A reading below expected will only suggest the economy continues in slow motion, and that QE will be here to stay", says Valeria Bednarik, chief analyst at FXstreet.com. "A sudden increase in inflation won't have a big impact as it will be just one stand-alone reading, although a huge deviation close or above 2.0%, will likely be understood as positive for the USD, at least in the short term".
As for EUR/USD, the pair reached a marginal new high of 1.3398 during the European session, but lacked momentum to break above the 1.3400 mark as cautious tone prevails ahead of the FOMC meeting. If EUR/USD breaks its range to the upside, next target will be 1.3434 (Feb 20 high), while on the other hand, immediate supports are seen at the 1.3320 area (Jun 17 & 18 lows) and 1.3295 (Jun 16 low).
"A reading below expected will only suggest the economy continues in slow motion, and that QE will be here to stay", says Valeria Bednarik, chief analyst at FXstreet.com. "A sudden increase in inflation won't have a big impact as it will be just one stand-alone reading, although a huge deviation close or above 2.0%, will likely be understood as positive for the USD, at least in the short term".
As for EUR/USD, the pair reached a marginal new high of 1.3398 during the European session, but lacked momentum to break above the 1.3400 mark as cautious tone prevails ahead of the FOMC meeting. If EUR/USD breaks its range to the upside, next target will be 1.3434 (Feb 20 high), while on the other hand, immediate supports are seen at the 1.3320 area (Jun 17 & 18 lows) and 1.3295 (Jun 16 low).