Dollar Needs Positive CPI Result to Regain Upside Momentum

September 13, 2018 9:59AM CDT

The dollar has found its footing this morning, but has stayed within a tight range in close proximity to Wednesday’s monthly low.  Brainard commented that gradual US rate hikes are appropriate for near future, provided some measure of support that implies more rate hikes than the market has priced in.  Positive trade talks between China/US and Canada/US has been the major cause of headwinds, but a surprisingly large decline in the PPI also weighed heavily on the USD.  This will put a lot of emphasis on this morning’s CPI reading to see if US inflation expectations need to be dialed back.  Turkeys central bank meeting that resulted in a 6.25% rate hike could be a wild card factor that pressures the dollar.  Resistance comes in at 9470 and 9510, support comes in at 9400 and 9390.

U.S. Dollar Index Sep '18 Daily Chart

U.S. Dollar Index Sep '18 Daily Chart

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