U.S. Dollar Higher after CPI Gain

The U.S. dollar climbed to a one-week high against its major peers as an unexpected rise in the U.S. cost of living in September underscored the strength of the world’s largest economy amid a slowdown in global growth.

The U.S. currency advanced for a fifth day versus the yen, the longest streak in more than a month. The euro fell against 14 or 16 major peers as investors weighed the prospects of additional easing policies from the European Central Bank. The pound slid as minutes of the Bank of England’s most recent meeting showed most policy makers saw greater risks to the U.K. from a euro-area slump. South Korea’s won climbed.

“The consumer-price-index numbers helped the dollar and are consistent with the recovery in risk sentiments,” said Vassili Serebriakov, a New York-based foreign-exchange strategist at BNP Paribas SA. “It doesn’t change that much from the Federal Reserve’s perspective, but it helps ease the fears that global central banks are losing the fight against disinflation.”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.