US DOLLAR (DXY) PRICE, CHART, AND ANALYSIS
Annual US headline inflation rose for the second month in a row, while core inflation fell for the fifth consecutive month, leaving Fed officials caught between two readings.
Headline inflation rose due to higher gasoline prices (+10.6%) which accounted for over half the increase, while the shelter component rose for the 40th consecutive month.
US Bureau of Labor Statistics – Consumer Price Index Summary
CME Fed Fund Probabilities are now indicating a slightly higher possibility of a Fed hike between November and January this year.
The US dollar barely moved on the release with a range of dollar-pairs brushing off the release. GBP/USD continues to change hands around 1.2470, marginally higher on the session after a weak GDP report earlier today fueled fears that the UK economy is stagnating.
GBP Breaking News: UK Growth Contracts Leaving the Pound on Offer
The US dollar is flat and stuck in a short-term trading range between 105.13 and 104.43. The greenback is closer to support and a break lower would open the way to 104.10 (20-dsma) and then 104.00 big-figure support. Neither of these is likely to hold a concerted push lower. Resistance is seen between 105.35 and 105.48.