logo |

News

    Home   >     Industry    >     Main body

    US dollar momentum wanes even as inflation surges

    Abstract:US dollar momentum wanes even as inflation surges

      The US dollar eased during the overnight session as investors reacted to strong US inflation numbers. According to the Labour Department, the headline consumer price index (CPI) rose by 5.4% in May while core CPI rose by 3.8%. The two were the biggest gains since 2008 and 1992, respectively. The data showed that the price of most items is rising as the economy recovers and supply backlogs continue. For example, the prices of cars rose by 7.3% because of the ongoing shortages of semiconductors. Still, analysts believe that the Federal Reserve will maintain its stand because it sees these numbers as being transitory.

      The British pound rose ahead of the latest UK GDP data that will come out at 07:00 GMT. The final figure is expected to show that the economy contracted by 1.5% in the first quarter, leading to a 6.1% year-on-year decline. The Office of National Statistics (ONS) will also publish the latest manufacturing, industrial production, and construction output numbers. The pound is also reacting to the reportedly rising number of coronavirus cases in the UK. Analysts expect that the government will delay the lockdown easing to curb the new wave.

      The euro is little changed after the European Central Bank (ECB) delivered its interest rate decision. The bank left the EU interest rate and quantitative easing unchanged. Analysts expect the bank to start tapering its asset purchases later this year since the EU economy has recorded a strong recovery. Later today, Spain will release its consumer price index data. Other key events scheduled for today are the G7 meetings and the Russian interest rate decision.

    EUR/USD

      The EURUSD pair rose to 1.2185 after the ECB decision and US inflation data. On the four-hour chart, the pair moved slightly above the upper line of the descending channel. It is above the 23.6% Fibonacci retracement level while the Relative Strength Index (RSI) has moved to the neutral level of 54. The pair will likely remain at the current range today.

    EURUSD
    GBP/USD

      The GBPUSD dropped to 1.4073 yesterday as fears of extended lockdowns in England rose. It then rose sharply after the latest US CPI data and is trading at 1.4173. The pair is slightly above the 25-day and 15-day moving averages while the Relative Strength Index (RSI) has moved to 56. It is also above the dots of the Parabolic SAR. The pair will likely remain at this range for the next few sessions.

    GBPUSD
    ETH/USD

      The ETHUSD retreated after the US inflation numbers. The pair dropped to 2,420, which was slightly below yesterdays high of 2,627. On the four-hour chart, the pair is slightly below the lower line of the bearish pennant pattern while the Relative Strength Index (RSI) kept falling. The pair is also below the 25-day moving average. Therefore, the pair will likely keep falling as bears target the next key support at 2,350.

    ETHUSD
    • line
    • Copy
    •   Share on Linkedin

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United States Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.