Soaring inflation spikes the US dollar

The US dollar is all geared up to hit its monthly high against its major rivals. Revised US inflation and a soft bond auction have led to a strong dollar.

In June, the Consumer Price Index (CPI) increased to 5.4% YoY than the expected 4.9%. And the core reading rose from 3.8% to 4.5%. According to Labor Department, inflation surged in June at its fastest pace in nearly 13 years amidst a burst in used vehicle costs and price increases in food and energy.

The EUR/USD has tumbled below 1.18 as analysts predict a further fall. GBP/USD hovers around 1.3820 while AUD/USD reached 0.7409.

It seems the higher oil prices have least affected the Canadian dollar. USD/CAD is presently hovering around 1.25. WTI Crude Oil has stabilized around $75.

Fed Chair Jerome Powell will talk about rising inflation and related developments soon. Investors are eagerly awaiting Powell’s testimony and hoping for the dollar economy to bounce back to normalcy.

Related Posts