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Dollar dips and yields rise after softer June CPI

June CPI came in below expectations, with the month-on-month reading down 0.4% as gasoline prices fell, while the US-Iran conflict supported oil prices.

Reported · Written up by our desk · Major Pairs

Forexlive said the US inflation picture provided a brief respite for markets after June CPI ran softer than expected, with the year-over-year rate at 3.5% versus 3.8% expected.

The outlet pointed to gasoline as a key driver, noting month-on-month CPI fell 0.4%, its largest monthly drop since May 2020, while also warning that oil has rebounded roughly 14% since early July as the US-Iran conflict restarted.

Forexlive added that core prices also cooled, while tariffs inflation spillover remained limited, though it cautioned that sustained higher energy prices could eventually feed into other parts of the economy.

On the market front, the firm said the dollar edged lower after the data, with EUR/USD around 1.1420 to 1.1440 and USD/JPY holding above 162.0, as Treasury yields moved back up toward roughly 4.60% on the day.

Latest closeGasoline (RBOB) $3.042 ▼3.9%|EUR/USD 1.142 ▲0.2%|USD/JPY 162.23 ▲0.2%

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