“The EUR/USD pair continued its upward trajectory during the American session, reaching 1.1125, which marks the highest point observed since March 2022. With the release of US inflation data, the US Dollar faced sustained pressure, allowing the pair to maintain its elevated position.”
Inflation Decelerates, US Dollar Plummets, and Wall Street Shows Gains
“The US Consumer Price Index (CPI) experienced a modest 0.2% increase in June, falling short of the anticipated 0.3% rise, leading to an annual growth rate decline of 3%. This figure represents the lowest level since March 2021 and was below the expected 3.1%. Consequently, the US Dollar witnessed a broad-based decline, with US yields also sliding.
Currently, the US Dollar Index is trading at its lowest level in a year, settling at 100.60, after experiencing a fifth consecutive day of losses. Furthermore, the US 10-year bond yield stands at 3.87%, reflecting a 2.50% drop and reaching a one-week low, a significant departure from Monday’s peak of 4.09%.”
Market Anticipates FOMC Meeting, Rate Hike Expectations Adjusted
“Market participants are still anticipating a rate hike at the upcoming FOMC meeting scheduled for July 25-26. However, following the release of inflation data, expectations of another rate hike before the end of the year have significantly diminished.”
EUR/USD Breaks Above 1.1100 Mark
“The EUR/USD pair is experiencing its most substantial daily gains in months. The daily chart indicates that the Relative Strength Index is approaching 70, indicating strong momentum for the Euro without any indications of an imminent correction. The immediate support level lies within the 1.1090/1.1100 range, while a robust resistance level emerges around 1.1170.”
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