US Dollar plummets to 92.60 on downbeat US CPI

The buck has given away initial gains and is now dragging the US Dollar Index to fresh lows in the 92.60 region after US CPI figures disappointed investors in September.

US Dollar offered on data

The index tumbled further after US inflation figures failed to meet market consensus in September. In fact, consumer prices tracked by the CPI rose at an annualized 2.2% and 0.5%, while prices excluding food and energy costs advanced 0.1% inter-month and 1.7% over the last twelve months.

In addition, headline retail sales expanded below estimates 1.6% MoM, while sales excluding the Autos sector expanded more than previously estimated 1.0% MoM.

The greenback quickly dropped to fresh weekly lows in the vicinity of 92.60 soon after the data, all in tandem with the fall in yields of the US 10-year reference to sub-2.28% levels.

Later in the session, Chicago Fed C.Evans (voter, centrist), Dallas Fed R.Kaplan (voter, dovish) and FOMC’s permanent voter J.Powell (dovish) are all due to speak ahead of the advanced results of the Reuters/Michigan index.

US Dollar relevant levels

As of writing the index is losing 0.29% at 92.67 facing the initial support at 92.59 (low Oct.13) seconded by 91.53 (low Sep.20) and then 91.01 (2017 low Sep.4). On the upside, a breakout of 93.45 (10-day sma) would pave the way for a visit to 94.03 (23.6% Fibo of the 2017 drop) and finally 94.27 (high Oct.6).