- EUR / USD gained nearly 30 pips on renewed USD weakness.
- The US dollar index turned negative below 93.00.
- The US annual CPI was unchanged in July at 5.4%.
After falling towards 1.1700 early in the session, the EUR / USD pair managed to stage a strong rally early in the US session and was last seen rising 0.2% on the day at 1.1743.
DXY reverses direction following July inflation report
Renewed USD weakness appears to be helping EUR / USD gain traction in the second half of the day. Data released by the US Bureau of Labor Statistics on Wednesday showed that the Consumer Price Index (CPI) was unchanged annually at 5.4% in July. In addition, the underlying CPI fell to 4.3%, compared to 4.5% in June.
Although these figures were largely in line with analyst estimates, the initial market reaction put the dollar under modest selling pressure. At the time of writing, the DXY was down 0.18% on the day at 92.90.
Meanwhile, Richmond Federal Reserve Bank Chairman Thomas Barkin told Reuters it could be a few more months before they hit the Fed’s tightest benchmark.
Later in the session, Federal Reserve Bank of Atlanta President Raphael Bostic will deliver a speech. In addition, the 10-year US Treasury auction at 17:00 GMT will be closely watched by market participants.
Technical levels to take into account
EUR/USD
| Overview | |
|---|---|
| Today last price | 1.1744 |
| Today’s Daily Change | 0.0023 |
| Today daily change% | 0.20 |
| Today they open every day | 1.1721 |
| Trends | |
|---|---|
| Daily SMA20 | 1.1811 |
| SMA50 daily | 1.191 |
| SMA100 daily | 1.1964 |
| SMA200 daily | 1.201 |
| Levels | |
|---|---|
| Previous Daily High | 1.1743 |
| Previous Daily Low | 1.171 |
| Previous weekly high | 1.19 |
| Previous Weekly Low | 1.1755 |
| Previous monthly maximum | 1.1909 |
| Previous Monthly Low | 1.1752 |
| Daily Fibonacci 38.2% | 1.1723 |
| Daily Fibonacci 61.8% | 1.173 |
| Daily Pivot Point S1 | 1.1706 |
| S2 daily pivot point | 1.1692 |
| S3 Daily Pivot Point | 1.1673 |
| R1 daily pivot point | 1.1739 |
| Daily pivot point R2 | 1.1758 |
| R3 daily pivot point | 1.1772 |
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