U.S. Inflation Looks Even More Tame If You Remove Housing Costs

U.S. central bankers eyeing services inflation as a key gauge of price pressures may find it pretty robust — until you take housing costs out of the equation. Services prices excluding energy rose 2.9 percent in the year through April, but if you also remove rents they were up 2.3 percent, according to consumer price index data published Thursday by the Labor Department. That second number was little changed from March, which removes some of the risk that the Federal Reserve will see an overheating economy that warrants stepping up the pace of interest-rate increases. The CPI report showed a broader measure of prices excluding food and energy rose a below-forecast 2.1 percent from a year earlier, a result that sent the dollar and Treasury yields lower. Read More @ https://www.bloombergquint.com/global-economics/2018/05/10/u-s-inflation-looks-even-more-tame-if-you-remove-housing-costs#gs.SKYJmwc

WHAT IS THE USD INDEX SAYING?

US CPI was lower then expected and the USD BULL RUN took a breather. Now is all about Mario draghi speech at 9.15pm today Hong Kong Time.

TODAY’S NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES TODAY.

  1. 9.30am – Australia will release their Home Loans – It’s a leading indicator of demand in the housing market – most homes are financed, so it provides an excellent gauge of how many qualified buyers are entering the market. We are cautious over AUD PAIRS for now.
  2. 8.30pm – Canada will release their Employment Change; This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts; Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
  3. 9.15pm – Mario Draghi speaks; As head of the ECB, which controls short term interest rates, he has more influence over the euro’s value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy – we are focusing to EURO at all support.
  4. 10.00pm – Prelim UoM Consumer and Inflation expectation – we believe both these datas will be good tonight.

We are cautious this week as the market still remains fragile. Always adhere to good money management.

High Risk Investment Warning:

Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.

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