US Dollar Weak, Ignores Good Inflation Data

The US dollar was among losers today, falling against most other major currencies and trading on par with the weakest of them, like the Japanese yen, the Great Britain pound, and the Canadian dollar. It looked like the release of US inflation data should be the major event on Friday but traders largely ignored it. The report came out better than expected but had hardly any positive impact on the greenback.
The US Bureau of Labor Statistics reported that both the headline Consumer Price Index and the core CPI rose by 0.4% in August after both indices increased by 0.6% in the previous month. Markets were counting on an increase of 0.3% for the headline index and 0.2% for the underline indicator.
The Federal Reserve will make a monetary policy announcement next Wednesday, and market participants eagerly await what the Fed has to say. While analysts expect no changes to the monetary policy, the wording in the Fed’s statement will be highly scrutinized. The pressure is mounting on the central bank to expand monetary stimulus, especially after the US Senate failed to agree on the coronavirus relief bill.
Next week will be rich in economic releases in the United States. Probably the most important of them will be retail sales data, also released on Wednesday.
EUR/USD rose from 1.1815 to 1.1843 as of 14:39 GMT today, reaching the high of 1.1874 intraday. AUD/USD gained from 0.7257 to 0.7287. Meanwhile, USD/CAD was about flat at 1.3190, rebounding from the session low of 1.3151.
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Original from: www.earnforex.com