US CPI final demand MoM for Oct 0.4% vs. 0.1% est.

Ex food and energy MoM 0.4% vs 0.2% estimate US inflation.  The US CPI YoY has not been this high since February 2012.  

US CPI came in better than expected:

  • Final demand MoM +0.4% versus 0.1% estimate
  • Ex ffood and energy MoM +0.4% versus +0.2% estimate
  • Ex food, energy, trade MoM +0.2% versus 0.2% estimate
  • Final demand YoY 2.8% versus 2.4% estimate
  • Ex food and energy YoY 2.4% versus 2.2% estimate
  • Ex Food, energy, trade 2.3% versus 2.1% last month

The initial reaction in the dollar is a move higher but the moves are somewhat limited so far, but the Fed certainly does not have a reason not tighten in December (it was pretty much baked in the cake anyway).  
The 10 year yield is still lower by -1.2 bp at 2.3931%.
We are now seeing the dollar reverse the small gains. The EURUSD is trading to new session highs a 1.1757. The USDJPY remains above it’s lows but is moving that way. It stays below its 100 hour MA at 113.55.  That is risk for shorts. It trades at 113.48 currently (low for day is 113.437)

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