Dollar Firm as CPI Likely to Confirm Disinflation Stalemate

Action Insight Daily Report 11-13-24

Dollar Firm as CPI Likely to Confirm Disinflation Stalemate

The financial markets are intently focused today on US inflation data. Expectations are that both the headline CPI and core CPI remained unchanged in October from the previous month's readings of 2.4% and 3.3%, respectively.

This stagnation in disinflation supports the notion that bringing inflation back to Fed's 2% target may prove increasingly challenging in its final stages.

Adding to inflationary concerns are fiscal and trade policies from President-elect Donald Trump, which could create further upward pressure on prices in the coming year.

Such an outlook would likely prompt Fed to maintain cautious and gradual pace in lowering interest rates.

In currency markets, the Dollar has shown strength this week, holding its position as the top performer. However, it remains contained below last week’s highs against commodity currencies. In contrast, Yen is lagging, followed by Sterling and Euro, while Swiss Franc positions around the middle....

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Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3918; (P) 1.3943; (R1) 1.3969; More...

USD/CAD breached 1.3958 briefly but upside is capped below 1.3976 key resistance. Intraday bias stays neutral first. Further rise is is expected as long as 1.3822 support holds. On the upside, decisive break of 1.3976 key resistance will confirm larger up trend resumption. On the downside break of 1.3822 support will bring deeper pullback towards 55 D EMA (now at 1.3762).

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
23:50 JPY PPI Y/Y Oct 3.40% 3.00% 2.80% 3.10%
00:30 AUD Wage Price Index Q/Q Q3 0.80% 0.90% 0.80%
13:30 USD CPI M/M Oct 0.20% 0.20%
13:30 USD CPI Y/Y Oct 2.40% 2.40%
13:30 USD CPI Core M/M Oct 0.30% 0.30%
13:30 USD CPI Core Y/Y Oct 3.30% 3.30%