- The EUR / USD pair appears to break the six-day losing streak.
- The US Dollar Index remains in negative territory below 93.00.
- Inflation in the US was unchanged at 5.4% annually in July.
The pair EUR/USD it remained under modest downward pressure in the first half of the US session and extended its decline towards 1.1700. However, with the dollar under selling pressure during US trading hours, the pair managed to rebound and was last seen gaining 0.22% on the day at 1.1745.
USD Valuation Drives EUR / USD Movements
Data released by the US Bureau of Labor Statistics showed that inflation, as measured by the Consumer Price Index (CPI), was unchanged at 5.4% annually in July. Additionally, the annual core CPI, which excludes volatile food and energy prices, fell to 4.3% from 4.6% in the same period.
This report caused the US dollar to weaken against its rivals and the US Dollar Index (DXY) reversed its direction after rising to a new multi-month high. Currently, the DXY is down 0.22% on the day at 92.86.
Meanwhile, the president of the Federal Reserve of Kansas City, Esther George, indicated that the moment has come to “adjust the monetary policy configuration”, but this comment did not help the dollar to gain strength.
On Thursday, industrial production data for June will be included in the European economic agenda. Later in the day, weekly data on Initial Jobless Claims and the US Producer Price Index will be revised for further momentum.
Technical levels
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
