- The dollar plunges on inflation data from the US.
- EUR / USD cuts the bearish tone and rises to test 1.1850.
EUR / USD jumped from mint levels of 1.1800 to 1.1844, reaching the highest level since Friday.s. The boost came from a general decline in the dollar following US inflation data for August., which were below the market consensus.
The Consumer Price Index (CPI) rose 0.3% in August below 0.4% of the market consensus. Both the underlying and the annual rates rose less than expected. Despite the decline, inflation is still at high levels.
The data generated a significant drop in Treasury bond yields, with the 10-year rate going from having touched 1.35% to 1.32%. This pushed the dollar down on all fronts.
The EUR / USD remains bullish and faces the 1.1850 zone as the next strong resistance. Now 1.1820 has become the immediate support, followed by the 1.1800 area where the lows of the day are and then the weekly floor around 1.1770.
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.