Breaking News – US Dollar Slips After Inflation Data Miss Forecasts

US Dollar (DXY) Price, Chart, and Analysis

• The US dollar sheds half a point after the CPI release.
• Headline inflation rises by less than expected.

Core inflation fell and headline inflation rose by less than expected in July, according to the latest US Inflation Report. Core inflation fell to 4.7% y/y, the lowest level since October 2021, while headline inflation rose from 3% to 3.2% but missed market expectations of 3.3%.

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Bureau of Labor Statistics Release

The marginally better-than-expected report sent the US dollar lower by around 50 pips as further rate hike expectations eased a fraction. EUR/USD touched 1.1065 before retreating back to 1.1035 at the time of writing, while GBP/USD clipped 1.2820 before falling back to 1.2775. Interest-rate sensitive gold rose to $1,930/oz after opening Thursday at $1,914/oz. before slipping back to $1,925/oz.

The US dollar (DXY) currently trades at 102.02 after opening the session at 102.489.

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US Dollar (DXY) Daily Price Chart – August 10, 2023

Chart via TradingView

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