US Dollar, Euro Pull Back Ahead of US CPI

Forex Talking Points:

– The US Dollar is showing mean-reversion tendencies near resistance, and the Euro has pulled-back from the sell-off that punctuated this week’s open as we approach tomorrow’s release of September inflation numbers out of the United States. The expectation is for a 2.4% print, so the bar is set very low considering last month’s 2.7% and the June and July prints of 2.9%.

– Risk aversion is a bit more quiet this morning in FX-land as both the US Dollar and the Euro have cooled; but selling pressure remains in European stocks as shown in the DAX. We’re not yet out of the woods on the scenario surrounding Italy, so much attention will likely be paid to European markets in the coming weeks to see whether risk aversion themes continue, or whether we see markets step back from the proverbial ledge as was seen in the May/June and again in mid-August.

– DailyFX Forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides pageArticle source: