Inflation figures from the US came in slightly softer in September compared to August. However, this doesn’t change or add any thing new to the Federal Reserve’s policy makers.

 

YoY Core Inflation slowed back to 2.2% down from 2.3%, while the MoM ticked higher by 0.1% compared to the estimated 0.2%.

 

The US Dollar Index remains lower for the day, but it gradually picked up some demand. GBP and NZD have been the strongest currencies following the upside surprise in New Zealand and Canada’s core inflation.

 

From a technical point of view, the US Dollar index is likely to see higher demand. However, this may only be the case if it manages to stay above the 97.46 support area, which should be watched carefully. Yet, a downside retracement is needed because technical indicators are heavily overbought.