EUR skyrocketed to an annual high. Overview for 13.07.2023
The market’s most traded currency pair maintains upward momentum on Thursday. The current EURUSD quote is 1.1140.
So, the US dollar dropped to its annual low against the Euro after the US published statistical data on the Consumer Price Index in June. The index rose by 0.2% m/m against the forecast rise of 0.3%. Such a monthly increase turned out to be the smallest since August 2021. Calculated year by year, inflation amounted to 3.0% against the forecast of 3.1%. A month earlier, it hit 4.0% y/y.
Core prices increased by 4.8% y/y against the forecast of 5.0%. This is also the slightest rise over more than two years.
The soft inflationary report confirms the market idea that in this cycle of interest rate hikes the Federal Reserve might only decide upon a single rise of the crediting costs. Given the above, the USD position worsened noticeably.
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