Global macro overview for 19/09/2016:
The inflation data from US were published last Friday and they surprised market participants. According to the US Bureau of Labor Statistics, the Consumer Price Index increased 0.2%, while investors anticipated only 0.1% acceleration after 0.0% figure a month ago. Moreover, on an annual basis, the inflation accelerated 1.1% from 0.8% in July. The Core CPI readings advanced 0.3% on a monthly basis in August after rising 0.1% in July, which was again more than market expectations of a 0.2% increase. In conclusion, this inflation growth is good news for FED and for sure it will be taken into account at FED's meeting this Tuesday and Wednesday.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. The market is trading below the intraday resistance at the level of 1.1197, but the key support at the level of 1.1120. hasn't been tested yet. Moreover, it looks like the market has done another lower high, so the immediate trading bias is now skewed to the downside.
