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CPI data out of the US was released at 1.3% higher vs. expectations of 1.1% (MoM). The US dollar is trading stronger across the board following the release of data which supports the Fed to continue to implement large-size rate hikes. EURUSD fell below parity for the first time in two decades as the common currency remains under pressure and following the US CPI headline.
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July 13, 2022
EUR/USD 1.0028 GBP/USD 1.1874 USD/CAD 1.3018 AUD/USD 0.6759 USD/JPY 137.43 USD/CNH 6.7301 USD/ILS 3.4789 USD/MXN 20.8823 USD/CHF 0.9815 USD/INR 79.6350 USD/BRL 5.4096 USD/SGD 1.4077 USD/DKK 7.4237 USD/SEK 10.5894 USD/NOK 10.2603
USDUS dollar hit two year high ahead of US inflation data as traders look for clues on the central bank’s rate hike trajectory. Inflation data was released at an increase of 1.3% vs. estimate of 1.1%, USD is trading higher.GBPGBPUSD remains largely unchanged. GDP numbers out of the nation showed it grew by 0.5% higher than consensus expectations. Bank of England Governor Andrew Baily suggested bigger rate hikes for the central bank.EUREURUSD sank below parity hitting a low of 0.9998 following inflation data out of the US. This is the first time EURUSD has fallen below parity in 20 years. The downward pressure in EUR is attributed to multiple factors including the war in Ukraine, the energy crisis and risk that Russia cuts off gas exports pushing the Eurozone into a recession.CADThe Canadian dollar fell against most of its G10 peers as markets await decision from the BOC later today. Expectation is for a 75 basis point rate hike. WTI crude oil remains below $100/bbl.ASIA/PACIFIC
USDJPY traded higher after declining yesterday. This move follows CPI data out of the US that will accelerate further pressure on the Fed Reserve to keep a hawkish stance.
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