U.S. consumer prices logged their biggest drop in eight months in September as the cost of gasoline fell, however, a steady ascent in the prices of other goods and services signaled inflation was starting to firm. The U.S. labor market also showed some good numbers.
Official data released Thursday showed that new applications for unemployment aid fell back to a 42-year low last week. The low level of layoffs and steadying underlying inflation could keep the door open to an interest rate hike from the Federal Reserve this year.
The Labor Department said its Consumer Price Index fell 0.2 percent last month after slipping 0.1 percent in August. In the 12 months through September, the CPI was unchanged for the first time in four months after rising 0.2 percent in August.
The so-called core CPI, which strips out food and energy costs, rose 0.2 percent after ticking up 0.1 percent in August. In the 12 months through September, the core CPI rose 1.9 percent, the largest gain since July 2014, after rising 1.8 percent in August.
The U.S. central bank monitors the personal consumption expenditures price gauge, excluding food and energy, which is running well below the core CPI.
Low inflation, which has persistently run below the Federal Reserve's 2 percent target, has been a major obstacle in the Fed's way to raising rates this year.
The greenback turned broadly higher against the other major currencies after the news was released, easing off a two-and-a-half month trough.
EUR/USD dipped 0.81% to 1.1381, pulling away from a 1-1/2 month peak of 1.1495 hit overnight.
The dollar moved higher against the pound and the Swiss franc, with GBP/USD down 0.23% at 1.5442 and with USD/CHF gaining 0.43% to 0.9536.
It was lower against the yen, however, with USD/JPY last seen at 118.60, down 0.20%.
Credit: mql5.com
No comments:
Post a Comment