- EUR / USD maintains the 1.1800 level at the closing bell.
- The August CPI had the smallest rise since February.
The EUR/USD it is trading at 1.1800 at the close of Wall Street and remains lateralized on the day within a range of 45 pips between 1.1800 and 1.1845.
The dollar fell against major currencies on Tuesday after data showed a smaller-than-expected rise in US inflation last month, raising uncertainty about when the Federal Reserve cut asset purchases. In afternoon trading, the dollar index dipped slightly to 92,601, moving away from a more than two-week high on Monday.
The Consumer Price Index for August rose the smallest rise since February and followed a 0.3% rise in July. The so-called core CPI increased 4.0% year-on-year after increasing 4.3% in July. The dollar index fell 0.1% to 92,498, falling from a high of more than two weeks on Monday.
The lower-than-expected rise in US inflation last month is creating uncertainty about when the Federal Reserve will cut asset purchases. Several Fed officials have suggested that the US central bank could reduce the purchase of debt securities by the end of the year.
Fed: next week
Looking ahead, the Federal Reserve will hold a two-day monetary policy meeting next week. The prospect of an aggressive turn is supporting the dollar as investors look to the central bank for Taper. This tends to benefit the dollar, as it suggests that the Fed is one step closer to tighter monetary policy.
Risk appetite also soured on Tuesday, with Wall Street stocks falling, while US Treasury prices rose sharply, pushing yields lower.
Technical levels
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