The US dollar surged as CPI came beyond predictions
The greenback ticked up versus the euro and touched a 1-month peak versus the yen on Thursday following the release of CPI figures for December that was beyond economist’s projections, spiking some concerns regarding Fed’s stance with early interest rate trims that was projected by traders.
CPI advanced by 0.3% the previous month, for 3.4% on annual basis. That was projected to be 0.2% monthly and 3.2% annually.
Specifically, prices increased more than anticipated as rents continued to rise.
Since Fed was expected to start reducing interest rates in March, traders are currently expecting hawkish stance from Fed with interest rate.
The dollar index that gauges the greenback versus its major pairs edged up by 0.08% at 102.42. trading around 102.20 ahead the anticipated figures release.
EUR/USD slumped by 0.06% to $1.09630.
USD/JPY added 0.13% at 145.97, post hitting 146.10, which is a peak not since the 11th of December.
