- Annual inflation falls more than expected in July in the US.
- DXY falls sharply and is posting its biggest daily decline in months.
- Treasury yields fall to daily lows.
The dollar experienced a fall rarely seen in recent months, after the US inflation figure for July. DXY went from above 106.00 to fall below 105.00, the lowest level since July.
EUR/USD jumped above the psychological and technical level of 1.0300, while GBP/USD did the same above 1.2200. USD/JPY 200 pips in seconds as it fell below 133.00.
The recoil of dollar it also occurred against those linked to commodities and emerging markets. USD/MXN tumbled to 20.00, while AUD/USD soared higher to 0.7065, the highest since mid-June.
The data also generated a rally in metals. The Prayed exceeded $1800 and the silver it approached $20.80, although they moderated the rise later.
The treasury bond yields They had a sharp decline. The 10-year rate went from 2.78% to 2.67%, before rebounding to 2.70%, the 2-year rate went from 3.27% to 3.08%. On Wall Street, the futures of the main indices went from registering increases of 0.25% to more than 1.25%.
The inflation data showed a higher than expected decline, after the Consumer Price Index remained unchanged in July. This raises speculation about a less aggressive Fed regarding previously expected monetary tightening.
Source: Fx Street
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