US dollar is all over the place after a hot CPI reading

The US dollar has made three separate moves after today’s US inflation report showed prices rising faster than anticipated. The first move was a 40-60 pip jump in the dollar as core CPI rose 0.4% compared to 0.3% expected in February.

However that move lasted only seconds and was quickly erased and then more.

But more recently, the dollar is beginning to climb again. On a one-minute EUR/USD chart it looks like this:

It’s a similar story in USD/JPY as it begins to climb again.

The bond market isn’t giving many clues as it’s played the same game as FX with US 2 year yields jumping, reversing and now tracking higher again.

This article was written by Adam Button at www.forexlive.com.