Key macro release of the week - US CPI report for April - has just been released at 1:30 pm BST. Report was expected to show a deceleration in headline and core inflation measures. However, there was quite a lot of uncertainty heading into the release given that PPI and ISM Prices subindices for April have been rather hawkish.
Actual report turned out to be mostly in-line with expectations. Monthly headline CPI was the only measure that surprised with a slightly lower reading than expected. While data was in-line with expectations, it should be noted that this was the first CPI reading of 2024 that did not surprise to the upside. This likely explains a strong dovish reaction on the markets.
US, CPI inflation report for April
- Headline (annual): 3.4% YoY vs 3.4% YoY expected (3.5% YoY previously)
- Headline (monthly): 0.3% MoM vs 0.4% MoM expected (0.4% MoM previously)
- Core (annual): 3.6% YoY vs 3.6% YoY expected (3.8% YoY previously)
- Core (monthly): 0.3% MoM vs 0.3% MoM expected (0.4% MoM previously)
USD slumped following the release, with EURUSD jumping to a daily high near 1.0870. US index futures gained with US500 testing 5,300 pts area.
EURUSD caught a bid following US CPI data for April and surged to fresh daily highs. The pair broke above the 1.0835 resistance zone and trades at the highest level since April 10, 2024. Source: xStation5
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