October 24 Wrap: US Dollar -0.5% on Lower Than Expected CPI Data
📊 Daily Performance
| Pair | Open | Close | Change | High | Low | Range |
|---|---|---|---|---|---|---|
| EUR/USD | 1.0960 | 1.1025 | +0.59% | 1.1040 | 1.0955 | 85 pips |
🏆 Winners & Losers
Strongest: Euro +0.59% | Weakest: US Dollar -0.5%
🔑 Key Drivers
- US CPI Data: Actual 3.03% vs Expected 3.1% – The US Dollar weakened as CPI came in below expectations, suggesting less pressure on the Fed to maintain aggressive rate hikes. The EUR/USD rose by 59 pips as a result.
📅 Tomorrow’s Calendar
| Time | Country | Event | Expected | Impact |
|---|---|---|---|---|
| 01:30 | Japan | Bank of Japan Interest Rate Decision | -0.10% | HIGH |
🎯 Overnight Watch
EUR/USD: Support at 1.0950, Resistance at 1.1050
Trade 24/5: Join YLDFX
Today’s forex market saw the US Dollar decline by 0.5% against a basket of major currencies, following the release of the US Consumer Price Index (CPI) which registered at 3.03%, below the anticipated 3.1%. This data has softened expectations for future Federal Reserve rate hikes, leading to a broad weakening of the Dollar.
The Euro emerged as the strongest performer, appreciating by 0.59% against the US Dollar, closing at 1.1025 from an open of 1.0960. This movement was primarily fueled by the weaker Dollar and positive closing figures in major European stock indices.
In other news, the S&P Global Manufacturing PMI came out slightly above expectations at 52.2 versus an estimate of 52.0, providing a modest boost to market sentiment regarding global economic stability. However, this was overshadowed by the CPI data which had a more immediate impact on currency valuations.
Looking ahead, the Bank of Japan is expected to make its interest rate decision tomorrow, which is highly anticipated given the current global economic climate. The expected rate is to remain at -0.10%, but any deviation could induce volatility particularly in the JPY crosses.
For traders, the key levels to watch on EUR/USD are the support at 1.0950 and resistance at 1.1050. A break beyond these levels could signify further directional moves based on upcoming economic releases and market sentiment. Investors should also keep an eye on the upcoming FOMC rate decision and Fed Chair Powell’s press conference, which could significantly sway market directions.
In summary, while today’s market movements were predominantly influenced by the US inflation data, traders should prepare for potential volatility stemming from central bank decisions and other high-impact economic indicators due later in the week.