- USA: Inflation continues to slow down and falls to 6.5% in December.
- The dollar collapses to minimums in months after the data.
- EUR/USD breaks above 1.0800 and extends gains.
EUR/USD broke above 1.0800 after US inflation data. The pair climbed to 1.0838, the level last visited in April 2022. The dollar is under pressure in the market due to a drop in Treasury yields.
Inflation slows in the US, the dollar plummets
The Dollar Index is falling 0.80% and is trading at its lowest since June, after the US inflation data. The Consumer Price Index fell 0.1% in December, and the annual rate fell from 7.1% to 6.5%, matching the market consensus. Following the data, Federal Reserve official Patrick Harker stated that it is time for the next rate hikes to be 25 basis points.
Harker’s comments contributed to the weakness of the dollar, which at the opening of Wall Street is very weak, with no signs of recovery at the moment.
EUR/USD is on track for its highest close in months and keeps its bullish tone intact. If the advance is extended, resistance can be seen at 1.0845/50 and then at 1.0885 and 1.0930. In the opposite direction, 1.0800 can become the first support, followed by the previous high in the 1.0770 area.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
