The US Bureau of Labor Statistics will release the inflation figures measured by the CPI for the month of September later in the NA session.
Initial estimates see headline consumer prices to have advanced at an annualized 1.5% during last month, up from August’s 1.1%. In the same line, consumer prices stripping Food and Energy costs are expected to have risen 2.3% on a yearly basis, matching previous reading.
Results in line or above forecasts will add further confirmation to the rising trend in the CPI, which has risen from July’s 0.8% YoY to 1.1% seen during August.
Regarding FX, a positive reading today would surely add to the ongoing USD rally despite the correction seen so far this week. In the meantime, EUR/USD remains around the key 1.1000 handle, fading the initial spike to the vicinity of the 1.1030 region. On the upside, the initial hurdle emerges around the mid-1.1000s, where sits the 4-month resistance line. On the opposite direction, a breach of recent lows around 1.0960 will put July’s low at 1.0950 back on the radar.