Here’s what you need to know on Friday, July 12:
He United States Dollar (USD) The USD Index suffered heavy losses against its major rivals on Thursday following June inflation data. After falling to its lowest level in over a month near 104.00, the USD Index recovered in the late American session and entered a consolidation phase around 104.50 early on Friday. The US economic calendar will include the Producer Price Index (PPI) data for June and the University of Michigan’s preliminary Consumer Sentiment Index for July.
US Dollar PRICE This week
The table below shows the percentage change of the US Dollar (USD) against the major currencies this week. The US Dollar was the weakest currency against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.32% | -0.89% | -0.91% | -0.16% | -0.24% | 0.60% | -0.02% | |
| EUR | 0.32% | -0.37% | -0.26% | 0.48% | 0.24% | 1.24% | 0.64% | |
| GBP | 0.89% | 0.37% | 0.08% | 0.88% | 0.61% | 1.64% | 1.01% | |
| JPY | 0.91% | 0.26% | -0.08% | 0.74% | 0.68% | 1.67% | 0.93% | |
| CAD | 0.16% | -0.48% | -0.88% | -0.74% | -0.13% | 0.78% | 0.16% | |
| AUD | 0.24% | -0.24% | -0.61% | -0.68% | 0.13% | 1.02% | 0.38% | |
| NZD | -0.60% | -1.24% | -1.64% | -1.67% | -0.78% | -1.02% | -0.61% | |
| CHF | 0.02% | -0.64% | -1.01% | -0.93% | -0.16% | -0.38% | 0.61% |
The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the chart will represent the USD (base)/JPY (quote).
The US Bureau of Labor Statistics announced on Thursday that annual inflation in the US, as measured by the change in the Consumer Price Index, slowed to 3% in June from 3.3% in May. On a monthly basis, the CPI declined by 0.1%. The core CPI, which excludes food and energy price volatility, rose by 3.3% on a yearly basis following the 3.4% increase recorded in May. Following these readings, the USD came under strong selling pressure. However, the negative change in risk sentiment seen later in the day helped the currency erase some of its losses. US stock index futures are trading mixed in the European session, while the 10-year Treasury bond yield is holding steady around 4.2% after losing almost 2% on Thursday.
EUR/USD The pair gained bullish momentum and tested 1.0900 during American trading hours on Thursday. After finding resistance at this level, the pair corrected lower but managed to stabilize above 1.0850. At the time of writing, the EUR/USD was trading sideways around 1.0870.
GBP/USD The pair extended its weekly recovery and hit its highest level in almost a year near 1.2950 on Thursday. The pair remains in a consolidation phase above 1.2900 on Friday morning.
USD/JPY USD/JPY fell sharply after the US inflation data and lost almost 2% on a daily basis. The severity of the pair’s decline made markets wonder if there was an intervention. As of early Friday, USD/JPY is holding steady above 159.00.
Gold benefited from falling US Treasury yields and broad-based USD weakness on Thursday, hitting its highest level since late May above $2,420. XAU/USD is slightly lower early on Friday but remains above $2,400.
Economic indicator
Producer Price Index (YoY)
The Production Price Index (PPI) published by the Bureau of Labor Statistics is an estimate of changes in prices received by domestic producers of goods at each stage of processing (raw materials, intermediate materials and final goods). A higher than expected result is bullish for the dollar, while a result below the consensus is bearish.
Next post:
Fri Jul 12, 2024 12:30 PM
Frequency:
Monthly
Dear:
23%
Previous:
2.2%
Fountain:
US Bureau of Labor Statistics
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.
