The US dollar index, which measures the performance of the dollar versus a basket of currencies, was sold off overnight; however, it rose by 0.2% and is at 97.15 at the moment. The annual inflation rate in the US increased to 2.5% in October from 2.3% in September, matching expectations. Also, consumer prices boosted it by 0.3%, the highest monthly gain in nine months, mainly due to the higher price of gasoline.
Core consumer prices in the United States, excluding volatile items such as food and energy, rose by 0.2 percent month-over-month in October 2018, following a 0.1 percent increase in September and matching market expectations. It is the highest monthly core inflation rate since July.
The Fed is still not showing signs of easing up on interest rate hikes and the US dollar is acting as a safe haven while China worries are driving risk off. Additionally, if trade war concerns wane, the focus may shift to political threats in the US and Europe.
The technical levels to consider for today for the US dollar index are 96.85 on the downside and 97.50 on the upside. The technical levels to consider for today for the USD/CAD are 1.3212 on the downside and 1.3240 on the upside.