Below-Forecast U.S. CPI, Retail Sales to Fuel EUR/USD Rate Rally

U.S. Consumer Price Index (CPI) to Slow to Annualized 2.1% from 2.2% in November.

Core Inflation to Hold Steady at 1.7% per Annum, Retail Sales to Increase 0.5% .

Trading the News: U.S. Consumer Price Index (CPI)

U.S. CPI

Fresh developments coming out of the U.S. economy may fuel the near-term rally in EUR/USD as the Consumer Price Index (CPI) is projected to slow in December, while Retail Sales are expected to increase 0.5% following the 0.8% rise in November.

A set of lackluster data prints is likely drag on the U.S. dollar as it curbs bets for an imminent rate-hike, and the Federal Open Market Committee (FOMC) may largely endorse a wait-and-see approach at the next rate decision on January 31 as inflation continues to run below the 2% target.

Signs of subdued price growth may also spark a growing dissent within the central bank as ‘some participants observed that there was a possibility that inflation might stay below the objective for longer than they currently expected,’ with the FOMC running the risk of completing its hiking-cycle ahead of schedule especially as ‘other persistent factors may be holding

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/trading_news_reports/2018/01/11/Below-Forecast-US-CPI-Retail-Sales-to-Fuel-EURUSD-Rate-Rally.html?DFXfeeds=forex:fundamental:daily_briefing:daily_pieces:trading_news_reports