This morning economic data release was a big disappointment for the USD bulls.

Core CPI MoM 0.1% vs 0.2% forecast

Core CPI YoY 1.7% vs 1.9% forecast

Real earnings 0.3% with the prior reading revised down to 0.3% from 0.4%.

This is not all. The FED previously announced that it was willing to tolerate an overshooting in general inflation until the core component of inflation and the labor market would have sent more clear signals. Well, CPI (including food and energy) was 1.9% vs 2% forecast, down from the prior reading of 2.2%. Considering that the target is set at 2%, this is a huge hit for the USD bulls, who now have to deal with lower Core and general inflation, in a situation in which the job market is growing but not the real earnings.

Retail Sales MoM -0.3% vs 0.1% forecast.

All eyes now on the FED press conference today at 2:30PM EST. This hike seems a done deal regardless of this last economic reading. It will be extremely important anyway to understand how the FED will continue this hike cycle in 2017.