A Blog of Commentary and Ideas from an FXstreet Premium Member by 
Hi everyone!
An IntraDay update for you!
Our U.S. CPI data points were dismal, as our large economic spiral continues into the Abyss.
Expectations here on total CPI were 0.2% Month-over-Month, and 2.4% Year over Year.
“Close…but NO Cigar!”, as we say…
Remember, these are INCLUDING Food and Energy…which will usually give a little stability since we use these items daily in our lives.
Stability?…I think not!
Month over Month fell off of the mountain coming in at -0.1%. This should not be a surprise to anyone out there in the States that has gone shopping.
Year-over-Year brings along additional confirmation with 3.7% as opposed to our estimate of 4.1%
We simply are just not buying any non-essentials…so this paradigm will be reflected in a larger chasm with what we are paying in retail prices and actually measuring in Price movements.
Our Core…minus Food and Energy was a bit more in line with 0.1% vs. 0.2% estimated…and Year-over-year clocks in at 2.2% vs. 2.4%
Now…here is the Key, in my opinion.
Did the “breaks” we saw and Dollar weakness come into play due to CPI being off the Mark and negative?
No !
It is my belief…and has been for weeks and weeks….that our Markets are simply ignoring any major Data Point releases.
We simply have too high of correlations to the US. Equity markets, the Dow, S&P500, etc. and our Currency work has been reflecting the overall Risk Aversion that has been blanketing the World.
Please be mindful of this…
Remember…the Markets are largely “counter-intuitive”, so as Traders we must adapt to the “Prevailing Winds” that blow our way!
Dear CVJ
Nice interpretations from real world situation to chart and sentiments then finally to sail with the wind.I have a question to ask if ok you may reply?
are we in a position to give the same comment before hand of the data release?
I am a reular reader of your thought provoking posts.
Regards
Dr.Sivaraman
Hi Dr. S!
Thank you, as always, for your support!
I sent my reply via private email to you regarding this matter.
Sincerely,
- Tim -