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Dollar rebounds above 100 as CPI sets up a data-heavy day

The US dollar index reclaimed the 100.00 level after CPI came in line with forecasts, while traders looked ahead to UK GDP and US PPI and jobless claims.

Reported · Written up by our desk · Major Pairs

FXStreet said the US dollar extended its recovery on Wednesday after the US Consumer Price Index came in line with forecasts, sending the dollar higher in broad trading. The US Dollar Index, or DXY, pushed back above 100.00 and the bid was described as strengthening against most major currencies heading into a packed session.

According to FXStreet, EUR/USD slipped back toward the low 1.1500s after reversing earlier gains linked to the post-CPI decline. GBP/USD faded into the high 1.3400s as traders positioned ahead of the United Kingdom GDP release scheduled for Thursday.

FXStreet also highlighted moves outside FX, noting gold extended its advance to trade near $4,410 per troy ounce amid Middle East tensions, while West Texas Intermediate oil held near $83.00 per barrel as the Strait of Hormuz closure kept a geopolitical risk premium in prices.

Looking ahead, FXStreet pointed to New Zealand RBNZ inflation expectations and the UK’s preliminary second-quarter GDP as major European and Asia-Pacific catalysts, followed by US Initial Jobless Claims and Producer Price Index data. The outlet added that core PPI was expected to slow to 4.2% year over year in July from 4.7%, with Fed officials Hammack and Barkin scheduled to speak around the release.

Latest closeGold $4,467.10 ▲1.9%|EUR/USD 1.153 ▼0.2%|GBP/USD 1.349 ▼0.1%

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