US CPI: Significantly higher number to give the greenback a further boost – Commerzbank
|It is clear that today's upcoming September inflation data are the absolute data highlight. Economists at Commerzbank expect the US dollar to enjoy further gains.
An even stronger US dollar?
“I still see the risks on the side of a strong US currency. This is because current inflation levels (most recently 8.3% and 6.3% for core inflation) are so far away from the Fed's target that a decline would have to be dramatic for Fed officials to let up on their aggressive pace.”
“An only slightly lower than expected number should do little damage to the dollar. By contrast, a significantly higher number is likely to give the currency a further boost, as it increases the risk of inflation becoming entrenched at high levels – precisely what the Fed is trying to prevent, which would make rate hikes that are more pronounced than previously priced in more likely.”
See US CPI Preview: Forecasts from 10 major banks, price pressure easing only very slowly
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.