US CPI m/m comes in at 0.4%

The US Consumer Price Index month over month (CPI m/m) for September was released today, showing an increase of 0.4%. No consensus figure was available for comparison.

Initial market reaction saw the US Dollar strengthen against major currencies, with EURUSD falling 14 pips within five minutes of the release. However, this trend largely reversed over the subsequent hour. One hour after the release, EURUSD was up 9.5 pips, which is smaller than its median 1-hour move of 20 pips after past CPI releases. Similarly, GBPUSD was up 6.1 pips after one hour, compared to its median 1-hour move of 20 pips. USDJPY saw a significant reversal, initially rising 18 pips but then falling 44 pips after one hour. Gold (XAUUSD) initially dropped 75 pips but recovered to be up 518 pips after one hour, a move significantly larger than its median 1-hour move of 52 pips. Overall, the market reaction for most USD pairs was relatively muted compared to historical movements, with the exception of XAUUSD and USDJPY’s volatility.