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.