Today we, the bureau of labor statistics (BLS) released inflation numbers for the month of August, and they were better than the average economist forecast. CPI m/m (August vs. July): 0.2%Forecast: 0.1%Previous: 0.0%Core CPI m/m: 0.3%Forecast: 0.2%Previous: 0.1%At 0.2% inflation per month, annual inflation would be above 2.0%, above the target rate by the Fed. Basically, if we had 0.2% inflation every month, the FOMC would likely vote for a rate hike. For the USD, this month's inflation data is a bullish factor. If we take a look at the EUR/USD, we can see that the pair fell after the CPI release, reflecting USD-strength.EUR/USD 4H Chart 9/16(click to enlarge)- The 4H chart shows a choppy market without a sense of direction. - There was a slight bullish tilt since late July, but it has turned sideways. - Today's USD-boost might give the EUR/USD further bearish outlook in the short-term, but we should still put this in the context of an overall sideways market. - A conservative target could be 1.1125. 1.1045-50 is viable, but 1.0955 might be an aggressive outlook simply based on today's move. - If price finds resistance at 1.12, then, the push to 1.0955 would be more likely.