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Dollar edges lower as EURUSD holds near 1.15 after U.S. CPI

U.S. CPI printed largely as expected, leaving traders pricing about a 40% chance of a September Fed rate hike, which pulled Treasury yields lower.

Reported · Written up by our desk · Major Pairs

Forexlive said European stocks ended mostly lower as London traders headed for the exits, while FX markets were steady after the latest U.S. inflation data.

In the foreign exchange market, the U.S. dollar was modestly lower but mixed. EURUSD was little changed at around 1.1537, GBPUSD edged higher to about 1.3506, and USDJPY slipped slightly to roughly 159.24.

U.S. CPI came in largely as expected, with headline CPI up 0.1% month over month and easing to 3.4% year over year from 3.5%. Core CPI rose 0.2% month over month and the year over year core rate eased to 2.5% from 2.6%, the lowest since February.

Forexlive added that the softer rate outlook supported a firmer bid for gold and helped push U.S. Treasury yields lower, with the move led by the shorter end of the curve. The market pricing shifted to around a 40% probability of a September rate hike, down from 44% before the CPI release.

Latest closeGold $4,430.80 ▲1.6%

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