Market Starts to Stall? US Dollar Soars After CPI Data!


 The US dollar surged against the euro and yen on Thursday after data showed that consumer price inflation came in above economists' expectations in December.

The main Consumer Price Index rose 0.3% last month, for annual growth of 3.4%. While expectations were 0.2% and 3.2% respectively.

The US dollar index which measures the US dollar against six major currencies finally traded up 0.35% on the day to trade at 102,460. It was trading around 102.20 before the data was announced.

In a separate report on Thursday, the Labor Department said preliminary claims data for state jobless benefits fell 1,000 to a seasonally adjusted 202,000 for the week ended January 6. Economists had forecast 210,000 claims for the latest week.

Claims data tends to be volatile at the beginning of the year. The number of people receiving benefits after the week the aid began, a proxy for hiring, fell 34,000 to 1.834 million during the week ended Dec. 30, based on the claims report.