EUR/USD spikes as US inflation misses the mark

The eagerly awaited October US Consumer Price Index (CPI) inflation report has now been released. As noted here much earlier today, the markets were looking for headline US inflation to have fallen back last month, from 0.4%, to just 0.1%. The annualised rate was forecast to fall from 3.7% to 3.3%. The annualised core rate was expected to remain unchanged at 4.1%. The actual data has revealed lower numbers across the board with almost everything missing estimates by 0.1%. The core rate has fallen to 4% and that is the kicker for the dollar. The US currency has fallen back across the board. The EUR/USD has spiked above any resistance at 1.0760 and just now rising above 1.0775