US CPI m/m comes in at 0.1% against 0.2% consensus

The US Consumer Price Index month over month (CPI m/m) for August was released at 0.1%. This figure came in below the market consensus of 0.2%, representing a -50.0% surprise. The previous month’s reading was -0.4%. The lower than expected inflation data suggests easing price pressures.

Following the release, the US Dollar showed broad weakness against major currencies. Fifteen minutes after the data, AUDUSD was up 13 pips, EURUSD gained 12 pips, and GBPUSD rose 13 pips. NZDUSD also increased by 10 pips. Conversely, USDCAD moved down 6.4 pips, USDCHF fell 7.7 pips, and USDJPY dropped 17 pips. XAUUSD, or gold, saw a significant rise of 109 pips. For context, the 15-minute moves for most pairs were smaller than their respective median 1-hour moves, such as EURUSD’s median 1-hour move of 21 pips. XAUUSD’s 109 pip move was larger than its median 1-hour move of 52 pips and exceeded its top-quarter release threshold of 108+ pips.