US Dollar Price, Chart, and AnalysisUS inflation continues to soar.US dollar strength is seen across the board.Keep up to date with all market-mov
US Dollar Price, Chart, and Analysis
- US inflation continues to soar.
- US dollar strength is seen across the board.
Keep up to date with all market-moving data releases and events by using the DailyFX Calendar
Inflation in the US soared to its highest level since November 1990 with prices across the board moving higher, data showed yesterday. The headline rate hit 6.2%, compared to market estimates of 5.8%, while the core rate rose to 4.6% against expectations of 4.3%. This latest jump in price pressures will surely put to bed the multi-month ‘transitory’ argument and will add pressure on the Federal Reserve to hike rates sooner rather than later.
USD Breaking News: Hawkish Pressure Increases as CPI Beats Estimates, DXY Higher
The strength of the US dollar against a range of other major currencies post-inflation data is clear with a couple of USD-pairs hitting multi-month lows. GBP/USD printed an 11-month low of 1.3364 earlier in today’s session, while EUR/USD touched 1.1458, a low last seen in July 2020. Both Sterling and the Euro have their own weaknesses and when combined with the US dollar’s ongoing strength suggests that these pairs may fall further. USD/JPY has resumed its multi-month move higher, adding around 120 pips post-CPI data, while USD/CAD has added over 150 pips over the same time frame.
The daily DXY chart below shows the strong upward trend channel that has guided the greenback higher is still in place. The basic channel shows repeated higher highs and higher lows made over the past five months, a strong indicator of bullish sentiment. Yesterday’s rally has pushed DXY into heavily overbought territory – using the CCI indicator – leaving the greenback vulnerable to a small pullback, or a period of consolidation, to normalize this reading. Overall the trend remains strong, suggesting that the greenback will move higher over the coming weeks.
US Dollar (DXY) Daily Price Chart November 11, 2021
What is your view on the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.
element inside the
element. This is probably not what you meant to do!Load your application’s JavaScript bundle inside the element instead.
www.dailyfx.com