US DOLLAR OUTLOOK: USD PRICE ACTION RIPPING HIGHER AS INFLATION HITS 4.2%US Greenback bulls ship the broader DXY Index sharply greater following r
US DOLLAR OUTLOOK: USD PRICE ACTION RIPPING HIGHER AS INFLATION HITS 4.2%
- US Greenback bulls ship the broader DXY Index sharply greater following red-hot inflation information
- EUR/USD worth motion plunges 50-pips as USD/JPY spikes 35-pips in fast response
- Federal Reserve taper talks may intensify amid proof of worth pressures rising shortly
Markets are reacting to the newest spherical of CPI inflation information. US Greenback volatility is accelerating because the DXY Index pushes sharply greater following hotter-than-expected inflation. Headline and core inflation crossed the wires at 4.2% and three.0%, respectively. This topped the market forecast searching for cooler prints of three.6% and a pair of.3%. The notably greater readings of inflation are serving to the US Greenback strengthen as the info may complicate the dovish Fed narrative and produce ahead the timeline for taper talks.
DXY – US DOLLAR INDEX PRICE CHART: ONE-HOUR TIME FRAME (07 MAY TO 12 MAY 2021)
Chart by @RichDvorakFX created utilizing TradingView
The broader DXY Index now trades practically 0.5% greater on the session because of the inflow of US Greenback demand. EUR/USD dropped practically 50-pips whereas USD/JPY jumped 35-pips in fast response to the inflation information. EUR/USD and USD/JPY are the 2 largest elements of the DXY Index with weightings of 57.6% and 13.6% respectively.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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