Will the CPI Crash the USD?
The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!
American dollar fluctuates close to 14-month lows
On Tuesday, the US currency was fluctuating close to 14-month minimums versus a currency basket, having tumbled for a fifth consecutive month in July, demonstrating its longest losing marathon since 2011.
Tracking the US dollar’s value versus six crucial counterparts, the US dollar index traded at 92.8, having dropped to 92.64 on Monday, showing its weakest outcome since May 2016.
In July, the index sank 2.88%, which is its fifth straight monthly sag as well as the largest monthly percentage tumble since March 2016.
Deepening political turmoil in in the USA along with weakening expectations for a third rate lift by the major US bank in 2017 have weighed on the greenback.
The greenback remained on the defensive after Friday’s data disclosed that notwithstanding American economic growth accelerated during the second quarter wage surge and inflation were still sluggish.
Evidently, the subdued inflation outlook has lifted doubts over whether the key US bank will be able to proceed with its planned tightening initiative.
The greenback traded close to one-and-a-half month minimums versus the Japanese yen, with USD/JPY being worth 110.19.
EUR/USD slid 0.16% showing 1.1821, having reached a two-and-a-half year maximum of 1.1845 overnight.
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